Greycoat: Price Divide Between North and South U.K. Properties Continues to Expand
Greycoat explains how a housing price trend that is an important marker for real estate experts in the U.K. is the “north and south divide.” This measures the variance in prices of homes and properties in the north of the country compared with southern regions.
The latest Zoopla House Price Index data shows that the divide between north and south continues to expand. In short, prices continue to display a modest fall in the south while the number of listed homes entering the market is up by 20% over the same time last year. Industry analysts with Greycoat Real Estate say affordability factors cause variations in home price growth related to higher mortgage rates.
Greycoat Real Estate observers say the difference is most notable at the city level. The strongest price growth is in Belfast which is up 3.6%. Burnley is up 2.4% and Bolton has risen by 2.4%. On the other hand, Ipswich saw a price decline of 3% and Hastings was down 2.7%. Norwich was off by 2.7%.
As for price falls in southern England, most are found in coastal cities where prices rose significantly during the “race for space” associated with the pandemic. According to Greycoat, demand is weaker in these places now, however.
The Real Estate Agency data shows that prices are rising in those cities that have below-average home prices where the influence of high mortgage rates is less of a driving factor. Greycoat Real Estate expects the divide between north and south house prices to remain throughout 2024 as values continue to re-align.
