A clear north-south divide in the rate at which house prices are rising has become apparent in the latest research on the subject.
Land Registry figures show the value of property increased by 8.4 per cent in the east of England and by 7.6 per cent in the south-east in the year to the end of August.
In comparison, three regions – the north-west, north-east and Wales – witnessed house price growth of less than one per cent. It means the vast majority of homeowners and buy-to-let investors who have enjoyed significant capital appreciation in the last year are based in the south of England.
Kevin Shaw, the national sales director at Leaders, says: ‘Prices in the south continue to surge upwards at a relentless pace, making it important for those who can afford to do so to get on the ladder sooner rather than later. It has also resulted in plenty of happy sellers in this part of the country, as many people are pleasantly surprised by just how much their house is worth when they come to sell.
‘There is no doubt a strong north-south divide exists, and people in the north can use this as a chance to move up the ladder while prices remain constrained by minimal growth.
For landlords, lower property prices mean good opportunities to acquire buy-to-let properties with attractive yields as well as potential for capital growth in the future.’
While the cost of the average home in the UK now stands at £184,682, there is a huge difference on a regional basis. A typical property in London costs £493,026 while this figure is as low as £100,943 in the north-east.
Although house prices differ drastically from region to region, rental demand remains strong across the UK with every region offering something for investors in terms of rental returns and long-term growth.
To find out how much your property could be worth to sell or let, and for expert advice on your local market, please contact your local Leaders branch – leaders.co.uk.