House prices in the North and West have surged amidst improving market conditions, according to the latest figures from Home.co.uk.
This growth comes at a time when London prices have slowly dipped while prices in the South East stagnate – a complete change compared to five years ago.
While London and surrounding regions experience a decline, regional markets in the Midlands, North and West have thrived over the last 12 months, with the East Midlands, in particular, leading the way with an increase of 6.1%.
Meanwhile, the East of England looks set to take on the same pattern as marketing times lengthen, supply rises and price growth falls below the level of inflation.
On the other hand, the North East has yet to recover its 2008 values while homes in Yorkshire and the North West have only just recently healed.
Overall, the supply of properties for sale in the UK is up 10% year-on-year – the largest contributions over January being from the East (+21%) and South West (+22%). By contrast, supply decreased in Wales (-5%) and rose only 2% in the North West.
“Buy-to-let accentuated the London property bubble and propelled a wave of property investment that spread through the Home Counties then to the West and North,” Doug Shephard, director at Home.co.uk, said. “In fact, the North is now in the early stages of recover nearly two years after prices peaked in Greater London.”
Shephard suggested that the UK should reverse the trends of escalating debt and falling productivity in order to keep these figures on the up.
“The work required will be significant because the debt is huge,” he said. “Productivity and reinvestment of the profits over decades might just do it if taxation is reduced.”
He added: “The need for policies that allow the real economy (productivity and trade) to reinvest profits and grow is immediate.”