North-South House Price Divide Widens

The prices of homes in the South have reached double the level of those in the North for the first time, a survey has revealed.

The Rightmove House Price Index showed the average asking price for properties in the southern regions of England has risen 4.7% to £336,743.

That compared with a drop of 0.7% to £164,347 in the North.

Across the England and Wales, the average asking price for a property has risen 2.8% to £239,672.

But Rightmove director Miles Shipside said the North-South divide in the housing market had never been larger.

"While those in the affluent South may have cause to celebrate their prices being well up on this time last year, prices in the North continue to go backwards, leaving the widest price gap ever," he said.

"For the average asking price of a property in the South you could now buy two average properties in the North and still have enough change left to buy new carpets and curtains."

Compared to the start of the credit crunch four years ago, prices of new properties for sale have risen by 5.4% in the South but fallen by 9.6% in the North.

Unemployment levels are generally higher in the North, which Mr Shipside said was a major factor in the gulf in property prices.

"There is quite a simple formula to generate activity in the housing market, and access to finance through the ability to raise a substantial deposit and a secure job to fund repayments are the key variables," he said.

"If prices are perceived to be rising, then buyers are afraid that their dream home could move out of their reach unless they act quickly.

"These drivers of higher volumes of transactions and more buoyant conditions are more prevalent in the South."