Monday, October 17, 2011

Public sector cuts disproportionately affect the north

House prices in south double those in north as public sector cuts widen gap to record levels

House prices are now more than twice as high in the south of England as in the north – their biggest gap since records began – 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.

Posted by drewster @ 03:19 PM (1122 views)
Please complete the required fields.



3 thoughts on “Public sector cuts disproportionately affect the north

  • Such hubris might possibly point to the real reason why the SE is lagging behind in the crash (and had a much larger bubble, e.g. between 1995 and 2007, Co Durham prices went up 133% compared with 220% in Surrey, yet prices in Durham are 28% down from peak whilst Surrey prices are only down 5%).

    Strange, isn’t it, that the recession didn’t disproportionately hit the South with its reliance on the private sector. Strange too that the North didn’t have a bigger bubble given the real term increases in public sector wages during the Brown years.

    Ian Cowie’s logic: House prices go up in my area because it’s a great area – I live there. House prices go down in places I don’t live, because they’re smelly places.

    House prices in Co Durham have risen at an average rate of 3.45% per annum since 1995 (which seems perfectly reasonable to me, especially given interest rates are so low). Given that most people regard 1995 prices as being a fantastic time to have bought a house, then surely the same can be said about current house prices in Co Durham. Fill yer boots – just don’t do it in Surrey.

    Reply
    Please complete the required fields.



  • Prices in Durham are 72% above 1995 prices.
    Prices in Surrey are 206% above 1995 prices.

    And Cowie thinks it is the North that is about to suffer.

    Reply
    Please complete the required fields.



  • crash bandicoot says:

    Ray Boulger of mortgage brokers John Charcol said: “The main reason for the increasing divide continues to be foreigners investing in the London property market. Some London estate agents, particularly those operating in the top end of the market, report that over half of their buyers are foreigners.

    Do I take it that Ray thinks this is a good thing? Maybe it goes some way to placating those who bought at the peak after following his advice, but day by day more people are realising that house prices have lost touch with reality.

    Reply
    Please complete the required fields.



Add a comment

  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user´s views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>