North South Divide of House Prices

The divide between house prices in north and south has increased in the past 12 months, reversing the previous trends of a narrowing of the gap.

According to a survey by the Nationwide, house prices in areas like Manchester and Liverpool have started to stagnate. House prices in London and the South East have continue to rise.

House prices in London are now nearly 120% the average in the north. Average house prices in London are now over £300,000. In Yorkshire House prices are only £155,000. However, even within these regions house prices can fluctuate between different areas.

Reasons for Rising London House Prices

1. Increase in population, partly driven by immigration
2. Rising City bonuses and salaries
3. Low levels of unemployment
4. Investment from oversees buyers
5. Continued shortage of supply

Reasons for stagnation of House Prices in the North

1. High levels of house building in the city centres.
2. Cooling off, after several years of high growth
3. Population not expanding as much as in south