House Prices are subject to the North – South divide

block-managementProperty prices rose and fell around Britain last year but the trend overall was downward. With already low interest rates and lenders being cautious many people will have to continue to rent as mortgages are out of their reach

According to the figures released by Nationwide this week house prices fell last year however this is not the story over the Great Britain as a whole.

While average house prices fell in the North of England, Wales and Scotland by around 3%, worse in Northern Ireland which suffered an Northern Ireland 8.2% fall, while property prices rose in London by 0.7%.

Commuter zones also benefited from a slight rise, and by 0.2% the in the South West. This is probably due to the higher employment rates in these areas.

Many tenants would like to buy but deposit requirements are making it impossible for them to do so. Taking an average first-time buyer property price of £140,000 requiring a 20% deposit which amounts to £28,000, this would require buyers to save £450 a month for five years, assuming an interest rate of 2.5%. Out of most people’s pockets we believe.

So it appears that renting is going to be the future for many young people in the UK, if they want to set up their own home.

For information on the properties we have available please visit our home page and fill in the search options.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s