House price gains in the United Kingdom have largely been accounted for by strong increases in the northern parts of the country, according to a new quarterly survey.
The Halifax Building Society earlier this month released its quarterly regional house price survey, showing higher increases in house prices in the north than in the south in the third quarter.
On an annual basis, house prices rose 38 percent in the north from the year-earlier period; 32 percent in Yorkshire and Humber; and 32 percent in Wales, significantly outstripping gains recorded in the south of England in 2003, Halifax said.
According to Halifax, the top 10 “property hotspots” over the last year are all outside the South, with Widnes recording the biggest house price rise, 68 percent, closely followed by Barry with 59 percent, St. Helens with 55 percent and Swansea gaining 53 percent.
In Wales, the 100,000-pound price barrier has been broken for the first time.
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In the South, house prices in Greater London gained 9 percent; in the Southwest and Southeast, prices rose 12 percent; and in East Anglia, prices rose an average 16 percent.
“The recent rapid rises in house prices in the North have led to a modest reduction in the North-South property divide over the last six months,” said Markin Ellis, Halifax chief economist. Chief Economist “More favorable housing affordability and encouraging labor market trends in the North should cause the gap to narrow further during the coming few quarters. The substantial differential in property prices between the South and other regions is, however, set to persist.”
Despite London showing the lowest regional annual gains, with house price inflation below 10 percent, the average house price is now 67 percent above the national average. This compares with an average of 48 percent above average over the last 20 years.
Although house prices in the South are still the highest, the gap between the South and the rest of the country has narrowed over the last six months.
The difference in the average house price has fallen to 89,400 pounds in the third quarter from a record difference of 95,000 pounds in the first quarter of the year, Halifax said.