Northern house prices growing at a fast rate
Northern towns and cities have a lot of catching up to do if they want to begin to match overall price increases that have been experienced in London, but signs are that they are moving in an upward direction.
Even though UK house prices saw an upward movement of 7.9% in the 12 months to January 2015, the last quarter of the year saw a distinct slowdown to just 1.1% showing a definite slowdown on increases previously seen. Looking at some data we can see that houses in Glasgow recently averaged a 4.1% increase making a house there cost about 4 times earnings. This contrasted with Oxford and London where house prices average 12 times average earnings.
Even though London still tops the league for house price rises, even though this has slowed down, it was still 13.6% Bristol has seen house prices rise by 10.8% and Oxford 8.6%. All of this means that house prices are still continuing to rise and this has amounted to an average of £144,000 in cities that bottomed out in 2009.
What this is showing is that the growing impetus behind UK price growth is shifting northward and cities like Edinburgh has seen increases of 10.7%, Leeds 10.1%, Newcastle 8% and since 2012 Glasgow 6.3%, now houses here are averaging between three and six times the average earnings.
Experts are pointing out that the unattainably high prices of London and the South are no longer able to keep rising, in contrast cities in the north are seeing a steady growth going a long way to catching up. House price growth within cities reflects the strength of their local economies and the demand for housing.