North/South property divide increases

House prices are now twice as high in the south of England compared to the north, according to new research.

The north/south divide is widening drastically as property prices continue to move in opposite directions throughout the country.

The fragile UK housing market has led to a high demand for properties in the South. Experts say that asking prices across London, the South-East, South-West and East Angila rose by 4.7% in September.

A study by Rightmove found that a typical house in the south now costs £336,743 compared to the north, where the average property will cost you £164,347.

This is a difference of £172,396 which marks the largest ever north/south price divide, according to the study.

House prices across the country fell last month and have been predicted to fall by as much as 10% come 2013. However, Rightmove believes that the south, and London in particular, could buck the trend.

Since the start of the credit crunch house prices have fallen by 9.6% in the north, yet have jumped by 5.4% in the south.

The 2012 Olympic Games could be a contributing factor to property demand in the south.

Miles Shipside, Rightmove Director, commented; ìWhile those in the affluent south may have cause to celebrate their prices being well up on this time last year, prices in the north continue to go backwards, leaving the widest price gap ever.

ìFor the average asking price of a property in the south you could now buy two average properties in the north and still have enough change left to buy new carpets and curtains.î

Banks and lenders are easing up on mortgages as the market is experiencing the highest level of mortgage approvals since November 2009. With low-rate deals widely available, this could encourage movers to head to the south whilst public sector job cuts hit the north particularly hard.

Compare mortgages with Money Expert.

 

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