The North-South divide in UK residential property prices look set to widen further by the end of 2013, according to a new study by the Centre for Economics and Business Research (CEBR).
London property prices are expected to grow by up to 2.4% in 2012, while properties in the North-East will see values fall 2.7%, as the capital remains relatively unharmed by the wider impact of the double-dip recession.
Wales, the North-West, Scotland and the North-East will see the values of their properties fall in each of the next two years. By contrast, London and the South East will grow by at least 2% in both 2012 and 2013.
London remains a safe haven for wealthy overseas investors. But this does little to protect other areas of the UK where demand from overseas investors is slight.
Even low interest rates and a lack of suitable housing supply have failed to prevent property slumps in other regions.
The UK average house price change is expected to be an increase of just 1%– an improvement on last year’s 1.5% fall, but way down on the 2007 pre-crash boom of 11%.
Douglas McWilliams, the chief executive at CEBR explains: “Demand in the London market remains resilient with the ongoing Eurozone drama piquing international interest in the capital. Furthermore, we can expect an abundance of affluent French citizens shopping for London homes if President [Francois] Hollande’s proposed 75% top rate of income tax is enacted.”
- Click to share on Facebook (Opens in new window)
- Click to share on Twitter (Opens in new window)
- Click to share on Google+ (Opens in new window)
- Click to share on Tumblr (Opens in new window)
- Click to email this to a friend (Opens in new window)
- Click to share on Reddit (Opens in new window)
- Click to share on Pocket (Opens in new window)
- Click to print (Opens in new window)
- Click to share on Pinterest (Opens in new window)