On his blog today, Richard Carr, a Commercial and Residential Development Specialist, looks at a report issued by property analyst Hometrack, which speculates that the north-south property divide could be about to narrow.
Should developers be looking north?
Is now the time for developers and investors to start focusing their attentions north of London? Hometrack’s report, published earlier this month, found that the momentum behind the housing market recovery is moving north through the country. Cities such as Liverpool, Sheffield and Glasgow have seen prices rise in the last year.
Whereas the likes of the Oxford and London property market, which experienced rapid growth over the last couple of years, looks set to slow down.
Sadly, the news for homebuyers isn’t great, with average house prices in both cities more than 12 times the annual earnings.
Recoveries staggered since the banking crisis
Hometrack found that the property market in the UK’s main cities, such as: London, Aberdeen, Cambridge, Oxford, Bristol and Manchester etc. had all hit rock bottom about six year ages and have since been recovering.
On the other hand, the markets in places such as Sheffield, Glasgow, Leeds, Newcastle and Liverpool have only seen a recovery in the last couple of years.
This means that cities further back in the recovery curve generally have house prices that are far more affordable in comparison to earnings, averaging between three and six times local wages.
Richard Donnell, director of research at Hometrack, said: “House price growth within cities reflects the strength of their local economies and the demand for housing.
“While Manchester and Birmingham saw prices bottom out in 2009, growth has been more subdued than in other cities where employment growth has been stronger and the influence of the London economy has been greater.
“Elsewhere, house prices continue to rise off a low base as pent-up demand returns to the market, supported by record low mortgage rates, an improving outlook and rising earnings.”
Don’t vote Labour
Richard Carr’s message is simple, don’t vote Labour! If you own a property then protect it by voting elsewhere. Richard believes that if Labour were to ‘Get first Past the Post’ they would have to side up with SNP, and if that happens get ready for your wealth to diminish!