When buying a property the most sought after thing is the location of the property. In south east near the capital the property prices have always been high and will continue to be high as it is near the economic hub of the country. This disparity exists purely because of the greater demand for properties in the south in comparison with the lower demand in the north.
However, you would expect that when there is a rise in UK house prices it would affect all areas in a very similar ratio. To the contrary in the North of the country and in Wales, the average house price rose by 1% whereas in the south east it rose by 7.6%.
Throughout the country the disparity is so large that they range of average house prices goes from £100,000 in some areas to £500,000 in others. In some case the average annual rate of increase of house prices in some areas is over 10 times greater than in others purely because of its location and these figure continue to spread further.
A reason for this could possibly be that cities are often home to an immense buy to let market and hence the demand for houses is greater than places outside of London. Furthermore, when it comes to properties for investment the cities usually tend to give the greatest return on investment as supported by the average house price increase in the city and therefore this also generates a lot of demand.
However, you would expect that when there is a rise in UK house prices it would affect all areas in a very similar ratio. To the contrary in the North of the country and in Wales, the average house price rose by 1% whereas in the south east it rose by 7.6%. Throughout the country the disparity is so large that they range of average house prices goes from £100,000 in some areas to £500,000 in others. In some case the average annual rate of increase of house prices in some areas is over 10 times greater than in others purely because of its location and these figure continue to spread further.
A reason for this could possibly be that cities are often home to an immense buy to let market and hence the demand for houses is greater than places outside of London. Furthermore, when it comes to properties for investment the cities usually tend to give the greatest return on investment as supported by the average house price increase in the city and therefore this also generates a lot of demand.
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