Anyone who is buying a house in the UK for the first time might want to think about buying up north if they are looking for something more affordable. The reason for this is because the gap in house prices between the north and south of Great Britain is getting wider. Property valuations in London average at around £430000, while in the north east they average at £149000, a third of the price.
The trend of higher house prices has been growing for quite some time and homes in the northern parts of the country have been less pricey than those in the south as far back as 1995 when the Land registry started compiling the figures. In the past 15 years since then house prices in London have increased by more than three times while they have barely doubled in the north east. When it comes to a drop in house prices, the same effect can be seen between the north and south. Prices of houses in the North drop by a much greater percentage than those in the South which also contributes to the great divide in prices.
Many economists attribute the varied prices to the different economies experienced in the two regions. The South generally has always had a stronger economy and the recession did not have the same impact in the South as it had on the north. Job losses and higher unemployment figures up north as well as a lower rate of growth might be one of the reasons why the prices of properties are lower there. The Southern parts of Britain have had a stronger recovery after the recession which has contributed to the higher prices. Another major factor that influences the price of homes across the United Kingdom is the supply and availability of homes that are up for sale.
The south is more densely populated then the north therefore the demand for housing is higher while the supply is more limited than in the north where there is more available housing for the population. The north has also seen an increase is the number of new homes and flats being built and has increased the supply thereby keeping the prices down. These factors and the difference in price has seen many new buyers make the move from up north and have been able to buy much larger and more spacious homes at a lower price than smaller houses in the south that were selling for a lot more.
Those who still think of the northern parts of Britain as dirty, industrialized towns will be pleasantly surprised to find that many northern towns are vibrant and offer great schools for those with young children. It is said that the people are also much friendly and a much better lifestyle can be enjoyed. As with the price of any house, location also plays a big part. For those who have good jobs in the south and who are not interested in relocating to the north, the good news is that you can still find a good deal depending on the location.
The bad news is that you will not be able to get the equivalent size home that you will get in the north for the same price. In the past few months there has also been a drop in the price of homes in the south and if this trend continues, the great price divide might start to get smaller and homes all over the country will become more affordable for all. People who are interested can get a free house valuation from an estate agent and for people who would like to get a more accurate valuation can have a building survey or homebuyers report from a surveyor.