Figures from Zoopla have revealed that the average house prices in Britain have remained mostly level in 2011. However, the division between north and south has widened.
At the end of 2011, the average house price was £221,331. This figure is down by 0.23% (£854) compared to the same time the previous year.
Regional contrasts have seen the largest gap during 2011, however. In London and the South East, property prices have increased, whilst the north has seen a decline. Average house prices in London are now 2% higher than last year, standing at £416,890. In the North East, house prices dropped by 6% in 2011, to £156,659.
This gap in property prices between the north and south is at its widest since recordings began in 1974. Every region has seen prices fall, however, since a peak in the housing market in 2007.
For homeowners who bought their property five years ago, these figures highlight the collapse of their house’s value.
Nicholas Leeming from Zoopla notes that Londoners will continue to see strength in the market, with a high demand for a limited amount of properties, which is boosting house prices. He also commented on the North East, explaining that 2012 does not show signs of change in this area. However, it is apparent that if the overall economy elevates, then this should filter through to the property market.
The jobs market is vital to the future strength of the housing sector. If the rate if unemployment is to rise sharply, then house prices are likely to fall further.
Nationwide, the highest percentage increase was in Scotland, where prices rose by 7%. Prices here still remain significantly lower than London, with an average of £164,844.