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The North-South Property Price Divide Defined
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
Last week, Chancellor Philip Hammond set out further plans to boost the Northern Powerhouse in an attempt to close the north-south divide. But, in terms of property price, where does this divide start and finish?
Online estate agent eMoov.co.uk has used the latest data from the Land Registry to provide a definitive answer.
The agent recorded the current average property price across each county, finding that there is a clear £200,000 boundary that separates the north and south of the nation – other than North Yorkshire, two areas in Scotland and two in Wales.
The split begins at Bristol in the West Country, running up the border with Wales, through Herefordshire and Shropshire, before cutting back down through Worcestershire below the West Midlands, by Leicestershire and Rutland, to Norfolk and the east coast.
The North-South Property Price Divide Defined
The border where the north meets the south acts as a clear mark where the UK’s over-inflated property market begins to lose steam, placating to a more affordable level.
The divide is apparent when it comes to the average property price between the north and south, as well as the rate of house price growth.
South of the border, the average property costs £295,395, having risen by 9% in the past year. This drops to £146,344 and an increase of 4% in the north. Removing Scotland and Wales from the equation sees a slight increase to £155,410 and growth of 5%.
The Founder and CEO of eMoov, Russell Quirk, explains the study: “Of course, this research is only valid where property prices are concerned, and doesn’t consider the further economic criteria that divide the north and south of the UK. However, with the divide often discussed across the industry itself, it’s important that there be a clearer definition of what and where it actually is.
“It is widely considered that the north is playing catch-up with the south where the divide is concerned and, of course, there is good reason property may command a higher price in particular areas of the UK.”
He adds: “However, for many struggling to get that first foot on the ladder, this research highlights the additional hurdles facing those south of the line and, in this instance, why heading north is a much more attractive proposition. Yes, property prices are climbing at a slower rate, but that is of little concern to those that don’t own a property.”
Despite Quirk’s warning regarding first time buyers, recent research shows that first time buyer sales in October were at the highest level on record.
