UK Property Prices: North v South

London property prices have always made the eyes water. But recently the well-documented prices have risen to levels that could cause an eye geyser rather than a gentle water.

Statistics over the past few months however, show that perhaps it isn't London that presents the most intriguing property investment potential. 

The property pricing trough hit in 2009 and since then rates have, in general, been on the increase with dubbed "housing bubbles" and "booms". However, it wasn't until 2012 that prices in Northern cities such as Leeds, Liverpool, Newcastle, Glasgow and Edinburgh started to recover with Belfast only recently showing improvement. Therefore, perhaps it is these locations that are worth watching for the savvy investor.

UK property institutions such as Nationwide, Halifax and RICS have all suggested that there will be a loss of momentum in London and so, the best investments could be found outside of the capital.

When looking at the final quarter of 2014, thisismoney.co.uk says "Cities in the north of the UK have seen more rapid house price growth". 

The Telegraph did report during summer 2014 that "...in the north of the country, every county except two has prices that are still below their precrisis peak, with County Durham, West Yorkshire, Greater Manchester and the North East among the worst hit." But somewhat contrary and more hopeful statistics were released in January 2015 by thisismoney.co.uk who stated, "the region which saw the biggest boost was the North West, with prices rising 2.6 per cent in the month." In addition, Lucian Cook of Savills supports this statement by saying, "At the other end of the scale, there is more capacity for price growth in the North East". Although he does add that "the economic drivers for it to be realised are weak." 

In summary, the challenging factor about London property and surrounds is the ability to achieve a good return on investment. With prices so very high, profits can only be sustained at a limited percentage. For example, LSL quoted rental yields of 7.1% for the north-west whereas London achieved only 4.3%. Any Buy-to-Let investor is indeed recommended to consider northern UK climes over its southern neighbours.


Of course, house prices are closely linked to employment rates and so London's burgeoning economy now, and always will, aid southern UK figures.


Dawson Surveyors knows that there is never an easy answer to property investment. And, of course, no property investment should ever be considered without fully assessing the specific merits of the property itself. 
Whether in the north or south, 
whether a flat, house or mansion, 
bricks and mortar always matter!


But we also believe that there are no problems and only solutions so please contact us for more information. Initial advice is free of charge. And our instant quote online service can make booking your property survey even easier!