Is the North South property price divide really contracting?

[FWL]

In recent times we have seen comments regarding the North-South divide and house prices in the North performing much better than their southern counterparts. However, is there really a major contraction in the North-South divide in relation to property prices? Or is this just a one-off as concerns regarding Brexit hit London and the south of England much harder?

 

[Mark Pearson]

I genuinely think that the slow in London was primarily affordability rather than Brexit concerns in the main. When you need 10-12 times your average earnings to buy an average property it gets tough.
The 2nd (and 3rd) cities of the UK are seeing growth and all seems to suggest that can continue for a while yet, narrowing the gap.
Naturally quality business's moving to these cities and the HS2 (if when?) would support the further narrowing of the margin.

 

[realdeals]

It is also worth noting that a number of companies such as Channel 4 have reduced their employment numbers in the capital and rebased their headquarters to Leeds. There is also HMRC which is opening an array of new regional branches and transferring many staff from London.

 

[Longterminvestor]

Time and time again people write off London and the south of England in favour of the North. Those who write off London do so at their peril although that said, there has been a significant shift in employment away from London to the regions. We have seen HMRC, Channel 4 and other high profile corporations switching some of their operations outside of London. Time will tell whether this trend will continue.

 

[FWL]

A recent report showed that the best performing major city property markets are in the midland, north and Scotland (with the exception of Aberdeen). However, is this just a short term situation?