Estate agents across the nation will tell you that for many years there has been a North-South divide for house prices. You might not realise how different the markets are in the South, but it’s quite substantial, to say the least. Property prices have soared in the South, especially in London, for the past two decades. However, it now seems as though the North-South house price divide might be narrowing. So, what does it mean for you and your property search?
Early predictions made by top estate agents say that house price growth in the North of England will reach over 21%. In Scotland and Wales, they’ll see an increase of 20% over the next few years. Those are staggering amounts as London and the South are predicted to rise a mere 4%. Of course, the predictions are partly down to demand, Brexit and the financial crisis. Markets have also been reshaped as many estate agents will tell you, especially since the Covid pandemic and consequential global uncertainty.
So, why is this happening? Estate agents are witnessing a rise in property owners that don’t want to sell. Many owners are happy to stay where they are and work with the space they have. It’s understandable because there is still uncertainty throughout the UK and Europe. The financial crisis has meant some owners are unsure about taking on a bigger mortgage.
Estate agents, however, are also seeing the rise of first-time buyers. It signals the market has somewhat shifted but it’s more balanced than it ever was.
The North-South house price divide might be narrowing but that doesn’t necessarily mean the South isn’t a great place to buy or sell a property. It simply means the market is strengthening in the North of the UK and average prices are increasing. It’s great news for everyone because the demand for properties continues to rise. If you’re looking to buy a home, it’s important to use the services of estate agents. You’ll find it far easier to find a home (or sell) with relative ease.
Don’t dismiss estate agents or the predictions some make. They often give you a good indication of how the market will look in the upcoming years. The North-South house price divide narrowing has a wider impact on the country as a whole. It’s a positive for the North of the country but it can also mean first-time buyers need bigger deposits to get on the property ladder. It doesn’t spell disaster for Londoners or those in the South either. Having said that, house prices are determined by many factors including location and condition.
Use the services of estate agents to find a property that best suits your needs today.
