North-South divide widens as house prices surge 10% in London in a year but fall nearly 6% in North East

The divide in house prices between the North and South of the country grew more pronounced in the past year as property price falls in some Northern regions contrasted with 10 per cent average gains in the capital.

Average property prices in London have surged higher over the last year with the cost of the average property in the capital now 9.6 per cent higher than twelve months ago at £374,568.

That compares to an increase across the country was a whole of just 0.9 per cent, while some areas suffered hefty falls. House prices in the North East during the same 12 months plummeted 5.5 per cent.

The Land Registry said average house prices across England and Wales rose 0.1 per cent between February and March. The average cost of a property in England and Wales is now £161,793, it said.

But that compared to a 2.5 per cent surge in house prices in the capital last month while in the North West house prices fell by the same percentage and now stand at £106,537.

In total, 47,600 properties changed hands in March, ranging from as little as £14,000 to £12.5million.

The £12.5million property which sold in March was in the London district of Kensington – the most expensive place in the UK in which to live. The cheapest sale in March 2013 at £14,000 was located in Burnley in Lancashire.

Sales were significantly below previous monthly averages. From October 2011 to January 2012 there was an average of 56,445 sales per month. In the same months a year later, the figure was 54,810.

In more positive news for the property market, the Land Registry said repossessions fell 18 per cent in the year from 1,602 in January 2012 to 1,317 at the start of this year.

The Land Registry said the most up-to-date figures available for January showed house prices sales fell 5 per cent year-on-year to 41,763 compared with 43,752 in January 2012.

The number of properties sold in England and Wales for over £1million in January 2013 increased by 28 per cent to 610 from 476 in January 2012.

London and Wales were the only regions to see an increase in repossessions over the past year, rising 28 per cent and 24 per cent respectively.

The Land Registry data comes as a separate report out today showed property prices rose 0.3 per cent in April – powered by a London market that is showing signs it has recovered to 2007 levels.

Hometrack, which measures house price growth using data submitted by estate agents, said house prices rose for the third consecutive month, with 0.7 per cent growth in London behind the increase in property prices.

Demand heavily outstripped supply, with interest from new buyers registering with estate agents in the capital growing three times faster than the rate of homes coming on the market over the last three months, the study said.

Elements of the London market recovered to levels not seen since the property boom in 2007, with the typical proportion of the asking price achieved on property sales at over 95 per cent compared with 93 per cent in the rest of the country.

And homes in the capital now take around four-and-a-half weeks to sell, half the national average and the quickest-selling time seen since 2007 Across the country, the length of time it takes to sell a home has been cut from almost 10 weeks in January to nine weeks by April.

Across southern regions it now takes less than two months to sell a house on average, although across the Midlands and northern regions it still takes over 10 weeks, and the average selling time in the East Midlands is 13 weeks.

News

North-South divide widens as house prices surge 10% in London in a year but fall nearly 6% in North East

Posted By TPBC Staff

The divide in house prices between the North and South of the country grew more pronounced in the past year as property price falls in some Northern regions contrasted with 10 per cent average gains in the capital.

Average property prices in London have surged higher over the last year with the cost of the average property in the capital now 9.6 per cent higher than twelve months ago at £374,568.

That compares to an increase across the country was a whole of just 0.9 per cent, while some areas suffered hefty falls. House prices in the North East during the same 12 months plummeted 5.5 per cent.

The Land Registry said average house prices across England and Wales rose 0.1 per cent between February and March. The average cost of a property in England and Wales is now £161,793, it said.

But that compared to a 2.5 per cent surge in house prices in the capital last month while in the North West house prices fell by the same percentage and now stand at £106,537.

In total, 47,600 properties changed hands in March, ranging from as little as £14,000 to £12.5million.

The £12.5million property which sold in March was in the London district of Kensington – the most expensive place in the UK in which to live. The cheapest sale in March 2013 at £14,000 was located in Burnley in Lancashire.

Sales were significantly below previous monthly averages. From October 2011 to January 2012 there was an average of 56,445 sales per month. In the same months a year later, the figure was 54,810.

In more positive news for the property market, the Land Registry said repossessions fell 18 per cent in the year from 1,602 in January 2012 to 1,317 at the start of this year.

The Land Registry said the most up-to-date figures available for January showed house prices sales fell 5 per cent year-on-year to 41,763 compared with 43,752 in January 2012.

The number of properties sold in England and Wales for over £1million in January 2013 increased by 28 per cent to 610 from 476 in January 2012.

London and Wales were the only regions to see an increase in repossessions over the past year, rising 28 per cent and 24 per cent respectively.

The Land Registry data comes as a separate report out today showed property prices rose 0.3 per cent in April – powered by a London market that is showing signs it has recovered to 2007 levels.

Hometrack, which measures house price growth using data submitted by estate agents, said house prices rose for the third consecutive month, with 0.7 per cent growth in London behind the increase in property prices.

Demand heavily outstripped supply, with interest from new buyers registering with estate agents in the capital growing three times faster than the rate of homes coming on the market over the last three months, the study said.

Elements of the London market recovered to levels not seen since the property boom in 2007, with the typical proportion of the asking price achieved on property sales at over 95 per cent compared with 93 per cent in the rest of the country.

And homes in the capital now take around four-and-a-half weeks to sell, half the national average and the quickest-selling time seen since 2007 Across the country, the length of time it takes to sell a home has been cut from almost 10 weeks in January to nine weeks by April.The total has fallen steadily through the downturn, reflecting buyers’ struggles to get on to the housing ladder.

Across southern regions it now takes less than two months to sell a house on average, although across the Midlands and northern regions it still takes over 10 weeks, and the average selling time in the East Midlands is 13 weeks.

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