Monday, October 17, 2011
Public sector cuts disproportionately affect the north
House prices are now more than twice as high in the south of England as in the north â€“ their biggest gap since records began â€“ as unemployment rises due to cuts in the public sector payroll but wealthy foreign investors continue to buy property in London and the Home Counties. The average house price in the north fell by 9.4pc since the start of the credit crisis but increased by 5.4pc in the south, according to Rightmove. Price decreases in the north were linked to higher unemployment figures and public sector layoffs, while cash-rich buyers in the south with larger deposits were able to secure low interest rates on mortgages.