This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.theguardian.com/business/2018/nov/02/northern-england-house-prices-to-rise-at-faster-rate-than-london
The article has changed 2 times. There is an RSS feed of changes available.
Previous version
1
Next version
| Version 0 | Version 1 |
|---|---|
| Northern England house prices to rise at faster rate than London | Northern England house prices to rise at faster rate than London |
| (3 months later) | |
| House prices are forecast to rise strongly in northern England, the Midlands, Wales and Scotland over the next five years, far outstripping London’s single-digit rate and reversing the trend of previous decades, according to a report. | House prices are forecast to rise strongly in northern England, the Midlands, Wales and Scotland over the next five years, far outstripping London’s single-digit rate and reversing the trend of previous decades, according to a report. |
| Savills, the upmarket estate agent, predicts that prices will increase fastest in north-west England over the next five years, at 21.6%. | Savills, the upmarket estate agent, predicts that prices will increase fastest in north-west England over the next five years, at 21.6%. |
| Other areas where Savills forecasts above-average growth are Yorkshire & Humberside (20.5%), followed by the east and west Midlands and Wales ( 19.3%), Scotland (18.2%) and the north-east (17.6%). | Other areas where Savills forecasts above-average growth are Yorkshire & Humberside (20.5%), followed by the east and west Midlands and Wales ( 19.3%), Scotland (18.2%) and the north-east (17.6%). |
| By contrast, London prices are forecast to rise 4.5%, although prime central London is set for 12.4% growth, as the top end of the housing market bounces back from the price declines seen in recent months. | By contrast, London prices are forecast to rise 4.5%, although prime central London is set for 12.4% growth, as the top end of the housing market bounces back from the price declines seen in recent months. |
| House prices across the UK are expected to climb by 14.8% on average between 2019 and 2023. This increase would add about £32,000 to the average house price by the end of 2023, taking it to £248,086. | House prices across the UK are expected to climb by 14.8% on average between 2019 and 2023. This increase would add about £32,000 to the average house price by the end of 2023, taking it to £248,086. |
| Savills said that stricter mortgage lending rules introduced in the aftermath of the 2008 financial crisis would limit price increases but would also protect the market from a crash. | Savills said that stricter mortgage lending rules introduced in the aftermath of the 2008 financial crisis would limit price increases but would also protect the market from a crash. |
| The return to growth in London overall will take far longer than expected, with buyers struggling to afford purchases and interest rate rises expected to occur earlier than previously assumed. | The return to growth in London overall will take far longer than expected, with buyers struggling to afford purchases and interest rate rises expected to occur earlier than previously assumed. |
| Savills forecasts that London house prices will fall 2% this year. They are expected remain flat in 2020 before rising by 2.5% in 2021. A year ago, it was predicting a flat outcome in 2019 and 5% price growth in 2020. | Savills forecasts that London house prices will fall 2% this year. They are expected remain flat in 2020 before rising by 2.5% in 2021. A year ago, it was predicting a flat outcome in 2019 and 5% price growth in 2020. |
| This reverses the trend stretching back to the 1980s for house prices in the capital to grow at a faster rate than the rest of the UK. In the past 1o years, London values rocketed nearly 67%, putting it far ahead of all other regions. | This reverses the trend stretching back to the 1980s for house prices in the capital to grow at a faster rate than the rest of the UK. In the past 1o years, London values rocketed nearly 67%, putting it far ahead of all other regions. |
| Property price growth in the south-east and east of England will also lag behind the UK average in the next five years, with a forecast of 9.3% growth for each region. There is likely to be a 12.6% increase in the south-west. | Property price growth in the south-east and east of England will also lag behind the UK average in the next five years, with a forecast of 9.3% growth for each region. There is likely to be a 12.6% increase in the south-west. |
| Lucian Cook, Savills head of residential research, said: “Brexit angst is a major factor for market sentiment right now, particularly in London but it’s the legacy of the global financial crisis – mortgage regulation in particular – combined with gradually rising interest rates that will really shape the market over the longer term. | Lucian Cook, Savills head of residential research, said: “Brexit angst is a major factor for market sentiment right now, particularly in London but it’s the legacy of the global financial crisis – mortgage regulation in particular – combined with gradually rising interest rates that will really shape the market over the longer term. |
| “That legacy will limit house price growth but it should also protect the market from a correction.” | “That legacy will limit house price growth but it should also protect the market from a correction.” |
| The forecasts come a day after a report from Nationwide, Britain’s biggest building society, showed that UK house prices are rising at the slowest annual pace in more than five years. | The forecasts come a day after a report from Nationwide, Britain’s biggest building society, showed that UK house prices are rising at the slowest annual pace in more than five years. |
| The average property value rose 1.6% in October to £214,534 from a year ago, down from September’s 2%, and the lowest annual growth rate since May 2013. | The average property value rose 1.6% in October to £214,534 from a year ago, down from September’s 2%, and the lowest annual growth rate since May 2013. |
| The squeeze on household budgets and the uncertain economic outlook is likely to have dampened demand, even though borrowing costs remain low by historic standards and unemployment is at 40-year lows, Nationwide said. It still expects house prices across the UK to rise by about 1% this year on average. | The squeeze on household budgets and the uncertain economic outlook is likely to have dampened demand, even though borrowing costs remain low by historic standards and unemployment is at 40-year lows, Nationwide said. It still expects house prices across the UK to rise by about 1% this year on average. |
| Real estate | Real estate |
| House prices | House prices |
| North of England | North of England |
| Property | Property |
| Scotland | Scotland |
| Wales | Wales |
| news | news |
| Share on Facebook | Share on Facebook |
| Share on Twitter | Share on Twitter |
| Share via Email | Share via Email |
| Share on LinkedIn | Share on LinkedIn |
| Share on Pinterest | Share on Pinterest |
| Share on WhatsApp | Share on WhatsApp |
| Share on Messenger | Share on Messenger |
| Reuse this content | Reuse this content |
Previous version
1
Next version