Gap between North and South house prices to close over the next five years

House prices across Britain are expected to increase by 14.8% from 2019 to 2023

The BBC(1) has reported that It’s been predicted by Savills, the estate agents, that the long-standing price divide between homes in the North and homes in the South will narrow somewhat over the next five years.

Healthy house price rises for the North

Property prices in the North of England are tipped to rise by an average of 20%, with prices in the North West expected to increase by 21.6%. The North East could look forward to a rise of 17.6%.

Further north still, in Scotland house prices will likely see a rise of around 18.2%% over the next five years.

Steady growth in price rises predicted throughout the Midlands and Wales

It’s thought that there will be significant house price rises of 20.5% in both Yorkshire and Humberside. Wales, the East Midlands and West Midlands will probably see property values all rise by about 19.3% over the same period, Savills believes.

Sluggish growth for the South

Meanwhile, property prices in London may only rise by 4.5% over the same time period. This news follows a report back in October 2018 that found that whilst house prices in the North West were rising by 3.3%, prices in London actually went down by 0.2% in London. So, a slight downwards trend has already been seen in the South.

Uncertainty over what Brexit may bring is considered to be a large factor in the slowing down of prices that we’ve already witnessed in the South in general.

Over the next five years it’s thought that the slowest rise in the UK will be in the UK. But, it’s worth noting that property prices are still highest in the London in the UK, and that prise rose by an impressive 72% over the last decade in the capital.

Estate agents believe that the South East and East will fare better than London, with both regions both tipped to see a 9.3% rise in house prices.

Housing market slow in general throughout the UK right now

Over the last five years there’s been relatively little activity in the UK housing market, with many homeowners deciding to stay put, either because they’re uncertain about the future or because they can’t afford to move up the property ladder. Many have chosen to remortgage in order to chase a better interest rate on their mortgage.

Yet, by staying put, fewer properties than usual have gone onto the market, generally helping to stabilise prices in some areas and rises in others.

An increased average UK property value?

The overall outlook is for an average house price increase of 14.8% over the next five years from 2019, with the average UK property value rising from £216,000 in 2018 to a new high of £248,000. Or to look at it another way, house buyers will need to find a further £32,000 to purchase the average house by 2024. All the more reason to see how Loan.co.uk could help you secure your home before the predicted price rises take affect.

(1) https://www.bbc.co.uk/news/business-46059279

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