How significant is the North-South divide in house sales?
In the current market, property sales in the north are on the increase whereas sales in southern cities are decreasing and according to Zoopla, house prices are following a similar trend. Zoopla looked into the 20 largest UK cities in order to determine these results.
It was found that Liverpool had the largest growth of sales over 3 years and also the largest house price growth of all cities studied. The average house price in Liverpool also stands at £122,100 in comparison to £482,800 to the average London home. The average house price growth from all UK cities is currently at 1.7% which is the lowest it has been for 7 years.
In contrast to Liverpool, property sales in London are down by 20% over the last 3 years, which surrounding cities and towns suffering similar fates. Zoopla put the slowing of sales in the south down to properties in London becoming less attractive due to high prices and stamp duty land tax changes and also Brexit uncertainty.
The research director at Zoopla said that “House prices in the south have increased at a rate higher than earnings in recent years outside the capital, which has caused house price growth to consequently slow down. This is largely due to weaker demand and price growth is set to remain low until affordability levels start to match back up to what buyers can and will spend”.
Sales Growth Since 2015
Birmingham – 5.1%
Bristol – -7.7%
Liverpool – 18.7%
London – -19.6%
Manchester – 1%
Newcastle – 4.6%
Oxford – -10.2%
Post courtesy of Money Expert