There is now such a clear north/south divide between property prices that the most expensive areas i...
There is now such a clear north/south divide between property prices that the most expensive areas in the South may continue to see prices fall for the next six months, suggests the latest Halifax house price survey.
House prices are still climbing 8.0% in the North followed by 6.8% in Yorkshire and the Humber and 5.5% in the West Midlands, but property prices fell in London by 0.9% and 1% in the South-east over the last quarter, partly because house prices have already doubled over five years.
Statistics presented by the Halifax suggest the average house price in London is now over £218,000 compared with the national average of over £129,000, but the gap between the two is shortening month by month, says Martin Ellis, Halifax's chief economist.
Overall, house prices rose by 0.6% in June, accumulating to 7.1% in the first six months of this year, because consumers are experiencing some of the lowest mortgage repayments in 20 years compared with their earnings.
"There is a very mixed picture across London and the South East. Many areas continue to see price rises," says Ellis.
"Property prices are increasing in parts of outer London. Prices also continue to rise in many counties in the South East with the strongest rises in Oxfordshire and East Sussex. There have been falls in some of the more expensive areas of London over the past year, such as Hammersmith and Fulham and Wandsworth, and counties such as Buckinghamshire and Essex have seen small falls in average prices in the second quarter.
"Overall, housing demand in the south of England, as elsewhere in the UK, remains underpinned by low levels of unemployment and low interest rates. There also remains a persistent shortage of homes in the south, a phenomenon that will continue to support prices in London and the South East over the medium and longer terms," he adds.
|Region||Index 1983=100||Standardised Average Price £||Quarterly Change %||Annual Change %|
|Yorkshire & The Humber||385.2||88,940||6.8||33.0|
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