You are here: Home - News -

The North-South divide in house prices continues to grow, says report

  • 14/03/2002
  • 0
Price gap between average houses in London and North East grows by 16%

The widening gap between house prices in the North and the South has been confirmed in Halifax’s latest research.

Figures show there has been a marked difference in house prices since 1991 with prices shooting up in Greater London, the South East, the South West and East Anglia, with the North posting more modest returns.

Martin Ellis, group economist at HBOS, said: ‘What stood out in the research was that there are big variations, not just across the country, but within the various regions as well. There is a big North-South divide which comes out starkly throughout the research. This is due to economic conditions and the desirability of certain areas.’

Alex Bannister, group economist at Nationwide, believes the North-South divide could narrow over a longer time scale, but says London has got a head start.

He said: ‘The level of prices in London are so much higher than in the North East to begin with. If prices in London went up by the UK forecast of 6% this year, then for the North East to close the gap by £1, the price growth would have to be 17.5%. It could happen over a longer period, but the gap at the moment is wider than it has ever been. The gap will never close in a significant way ‘ you would need years of growth.’

Ellis agreed: ‘In the short term there will be some narrowing of the North-South divide, but the divide will persist and there is no reason to suspect that it will not. We will see more of a slowdown in the market. House prices have risen so sharply in the South there is no scope for them to continue rising so rapidly whereas there is scope for the North to catch up.’

During the fourth quarter last year, Halifax looked at the gap between the price of a London property and one in its cheapest region, which is the North East. The gap had increased from £94,000 at the end of 2000 to just under £110,000 at the end of last year ‘ an increase of 16%.

Bannister said: ‘London prices are so far ahead we do expect the capital to be held back this year, as the top end of the market has been held back by weaker bonuses, global influences and affordability.’

house price growth

Top five towns by % increase

Thames Ditton (South East)

Teddington (Greater London)

Shepton Mallet (South West)

Thame (South East)

Lisburn (Northern Ireland)

Bottom five towns by % increase

Ardrossan (Scotland)

Irvine (Scotland)

Cottingham (Yorks & The Humber)

Redcar (North)

Denny (Scotland)

Source: Halifax


There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.


Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.


Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.


Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
  • RT @robjupp: Great day yesterday for donations to @MortSleepOut. With Gift Aid, we are now close to £17,000. It would be great to get to £2…

Read previous post:
As easy as…

With so much jargon used in the non-conforming market, brokers will need to give borrowers guidance to help them through...