New research has suggested that, while the North-South house price divide remains “considerable”, the chasm has started to narrow.
According to eXp UK, this is largely driven by higher rates of house price growth seen across the North during the pandemic property market boom, as well as growing market sentiment as a result of the government’s announcement of the Levelling Up Fund.
The estate agency reports that the average house price across the South currently sits at £404,869, with every region south of the divide home to an average house price north of £300,000.
In contrast, the average house price across the North is currently £209,404, with the West Midlands home to the highest average house price at £256,937. Based on these figures, the North-South divide in property values remains a notable 93.3%.
After adjusting historic house price data for inflation, the research also shows that this gap has widened from 79% a decade ago (2012). However, in November 2020 the divide had climbed to 97%, showing that the gap has now began to close, albeit slowly.
Head of eXp UK, Adam Day, commented:
“There’s no doubt that a heightened level of pandemic property market activity has helped drive market performance in the North, but the government’s plans to boost economic prosperity in northern regions via the launch of the Levelling Up Fund has also contributed to a more buoyant degree of market sentiment.
While it’s still very early days in terms of money actually spent, the ongoing regeneration and investment of the North should help to further close the North-South divide going forward. Although with the gap remaining vast, it’s unlikely to tip the scales completely in the opposite direction.”
