Zoopla has revealed that, for the first time in eight years the house prices in London fell in 2017. This research carried out by the online property site has shown that growth in the northern region of the property market has outstripped that of the South.
The figures collected by the online property search engine has shown that property values have increased by 2.6% over the course of the year, which means that the average UK home costs in the region of £211,156. This value increase means that in all, properties are £5,258 more expensive that they were at the end of 2016 according to information that has been released by Nationwide Building Society.
Despite the news of a value increase, this headline figure appears to cover up the significant regional variation that is experienced, with property values appearing to drop by 0.5% in London, yet increase by 5.2% in the West Midlands. The Chief Economist for Nationwide, Robert Gardener has said that for the first time since 2008 the annual rate of change when it comes to property values has been measured as above that seen in the south of England.
The change in the tide of property value has been attributed by some to the regional difference in price growth and to the growing affordability constraints that are being put on southern regions. It has also been mentioned that a first-time buyer looking to buy a property in the north or in Scotland with a 20% deposit would only need to be on the 30th income percentile. For those looking to purchase a property in the south east under the same conditions, they would need to be in the 80th percentile, and the 90th for those looking to buy in London.
It is thought that, going forward, the building society group expect that housing prices will grow by just 1% over the course of 2018.
