House Prices in the North outstrip the South
According to property website Zoopla, house prices in the North of England grew faster than the South in July. Edinburgh and Liverpool grew the fastest with both seeing a rise of almost 6% year on year. Next best was Leicester where prices increased by 4.4%. Although Edinburgh performed well, other areas did not see the same trend. For example, prices in Aberdeen went down 4.8%. In the South, London continued to flatline and areas such as Oxford saw values fall by 0.4%.
Interestingly, the data suggests that average wages increased by 3.7% across the UK during the same period. This means that homes should be feeling slightly more affordable in areas where property prices are not rising so quickly.
Why are house prices in the North outperforming the South?
When it comes to why the North is outperforming the South, this is quite interesting. Although this has been happening for some time now, it’s traditionally expected to see the opposite. One of the biggest drivers in the property market and demand for local mortgage advice is consumer confidence. So perhaps these figures continue to illustrate that Northerners are feeling more positive about the future of the UK economy than their Southern counterparts.
The October 31st Brexit deadline is just around the corner now and as we know, a lot of the “Remainers” live in the South of England. These voters are likely to be less confident about post-Brexit Britain because it’s not what they voted for or what they wanted to happen.
It will be fascinating to watch what happens to property prices over the coming months. Will house prices in the North continue to outpace the South, or will things return to normal?