The news surrounding the property and housing market throughout 2011, and particularly in recent months and weeks, has been somewhat varied. From year high property sales to a gloomy housing market, property prices fluctuating, and increasing numbers of property millionaires being created, it really does seem that, depending on wherever you are located within the UK, you could be experiencing a frugal property market, or alternatively a very depressed property market. And the latest research that has been carried out by Zoopla serves to confirm that thought.
On average, property prices in the UK throughout 2011 remained fairly flat. The average price of a UK home now stands at £221,331. This represents a 0.23% decline since the previous year. So yes, such a figure indeed proves that 2011 was a rather flat year for property prices.
However, figures have revealed that the divide between the North of England and the South of England has widened further, with unsurprisingly London, and the South East, seeing prices rise, whilst the North has seen prices decline.
The average price to pay for a pad in London is now £416,890. That is a whopping £195,559 more than the national average for a home. So, to live in the UK capital, the average person is expected to pay nearly a fifth of a million pounds more than the average person would pay to live elsewhere in the UK. That is a huge amount more money, but it is little surprise that prices in London are so much higher than the rest of the UK.
With the Olympics on the way it is more than likely that London property prices will rise further too. Rental demand in the capital is also likely to soar further as anyone who is anyone may want to be in town during the Olympic Games. For those few weeks landlords will undoubtedly be able to charge higher prices for rent in and around London.
It will also not be a surprise to find an increasing amount of people registering spare rooms for rent, and those concerned may indeed opt to protect themselves with a landlord insurance quote in the event that any damage is incurred to the room or the property.
Prices in the North
Furthermore, if we return to the issue of property prices, Zoopla have also revealed that the average property price in the North East declined by 6%, which translates in monetary terms to a decline of £9,596 in 2011. The average house price in the North East now stands at £156,659. So that’s £64,672 less than the national average, and a massive £260,231 less than what it would cost the average buyer in London.
That’s over a quarter of a million pounds difference from one region to the next, which again confirms that the outlook of the property market really does depend on where you are situated within the country. Property is booming in London and the South East, whereas in the North of England it is quite the opposite. Savvy property investors may well benefit from property fluctuations. A bigger property for less money in the North could translate into higher rental yields than a smaller property for more in the South.