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The North-south Divide Is Back, Says Rics

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http://business.timesonline.co.uk/tol/busi...icle6790637.ece

The North-South divide, that longdisputed, geographically contentious, sometimes bleak and often bitter economic faultline across the heart of England, reopened just a little further yesterday. New figures showed that house prices rebounded in London and the South West last month, but continued to tumble in the North and in the Yorkshire and Humberside regions.

According to the Royal Institution of Chartered Surveyors’ (RICS) key gauge of house prices, released yesterday, the number of estate agents recording price increases in London in July outnumbered those reporting decreases by 31 per cent. This came after June’s figure of 6 per cent and the -14 per cent recorded in May, when the number of estate agents recording price declines outnumbered those reporting increases.

But the figures made grim reading “up Northâ€. The balance in the Yorkshire and Humberside region in July was -37 per cent and further north it was -23 per cent. In the South West it was a more encouraging 7 per cent and in the South East 2 per cent.

Simon Rubinsohn, chief economist at RICS, said that the figures confirmed earlier indications that the North-South house price divide was returning.

Prices were holding up better in the South because relatively fewer properties were being put up for sale there, he said, blaming the recession for hitting northern manufacturing industries harder than the more nationally focused service industries.

RICS also revealed that the number of properties being put on the market increased in July for the first time since May 2007, albeit by a fraction. Two per cent more estate agents reported an increase in new instructions than recorded a decrease, according to RICS.

“Significantly, the more positive news on prices — at least in some parts of the country — may prompt more properties to come on to the market,†Mr Rubinsohn said.

“If mortgage availability remains insufficient to meet the increase in buyer demand, then it is possible that prices may slip back again, especially if unemployment continues to rise and mortgage rates increase.â€

So property prices are being held up in the South due to limited supply.

Is it also possible that since wages are larger in the South many couples can just about survive on one wage for a time and avoid repossession for longer?

Are there any stats showing average LTV in regions? Just wondering if the north has a higher LTV ratio than the south.

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Good. That's our game plan. Southern houses to keep more value, and northern houses to drop then we move up north back to my tribal homeland and buy our next house outright.

Keep it up chaps.

TFH

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The good old north-south divide, the lazy journalist's friend.

15 years ago it was my task to write up a report which my CEO wanted to get some PR. The PR agency blithely said to me "Look, put a lot about the north-south divide in the executive summary and imply its the governements fault........ look it doesn't have to be true, the rest of the report can accurately represent the data, this is PR and if you say north-south divide the papers will print it."

They were right, its a trick that gets lots of stuff into the media. When you delve into the data published in said reports you often find the summary says something very different from the body of the report.

Ever heard of the East-West divide? Check out sub-regional incomes data and you'll find it exists too, just isn't a media buzz word.

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So really it's a south east and everyone else divide.

Up to a point.

Some of the biggest disparities in incomes occur between parts of the south-east. The north-south divide is a piddling stream compared to the torrent-filled crevasse that occurs in parts of the home counties. (Inevitable since the regional averages are highly smoothed data compared to more precise local stats.)

If the N-S divide is big enough to write about you'd think people would want to know about much bigger divides in society. But its just not politically correct to say there are poor parts of the south east.

The media wont/can't say because it doesn't fit the simplistic image they wish to portray. National or regional averages are easy to write about because there is no need to ask your reader to think too much. Giving the reader a true, more complex, picture is not what journalists are trained to do. If you can't say it in 10 seconds its not news.

PS You'll also find pockets of the north that are wealthier than the average in the south-east and you find parts of the south-east that are worse off than the average of the north. Overall there is a broad north-south, and an east west divide, but knowing that is as useful as trying to identify a courgette solely on the basis that many vegetables are green.

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Good. That's our game plan. Southern houses to keep more value, and northern houses to drop then we move up north back to my tribal homeland and buy our next house outright.

Keep it up chaps.

TFH

Thats if you can find a buyer for your over priced southern house - which is unlikely unless you drop the price to an affordable level. Looks like your stuck there.

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Guest joeschmo
Good. That's our game plan. Southern houses to keep more value, and northern houses to drop then we move up north back to my tribal homeland and buy our next house outright.

Keep it up chaps.

TFH

You mean people actually choose to live north of Watford? :unsure:

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You mean people actually choose to live north of Watford? :unsure:

More nasty ZaNu Labour bigotry Joeschlong? Adding hating Midlanders and Northerners to sexism and backing your homophobe thug mate Perfectionist?

Yes they do and historically they are the only reason ZaNu ever held power (they maybe didn't teach you that in media studies)...........not for much longer mind. :lol:

ps. people choose to live in Scotland and Wales as well............

Edited by Warwick Yellow

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Guest joeschmo
More nasty ZaNu Labour bigotry Joeschlong? Adding hating Midlanders and Northerners to sexism and backing your homophobe thug mate Perfectionist?

ps. people choose to live in Scotland and Wales as well............

Dont hate them, just can not understand why they would choose not to move somewhere more civilised

<_<

Oh and I was born in wales

Edited by joeschmo

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