The price gap between the North and South has started to close, driven by higher rates of house price growth seen across the North, as well as growing market sentiment as a result of the Government’s announcement of the Levelling Up Fund, according to findings by eXp UK.
Based on these property market parameters, the research by eXp UK shows that the North-South divide in property values remains a notable 93.3%.
However, the gap has started to close, albeit marginally – house prices in the North have increased by an average of 8% after adjusting for inflation, driven by the North West (+11%) and Wales (10%).
In comparison, house price growth across the south has averaged 6%, with the South West seeing the highest rate of growth at 10%, while London trails within the south with a -2% decline.
This stronger performance across the North has reduced the gap from 97% to 93.3% over the last two years.
Head of eXp UK, Adam Day, said: “It remains a tale of two markets across the UK property sector, with the South remaining the dominant force in terms of overall house price pedigree, while the North has enjoyed a stronger performance of late where house price appreciation is concerned.
“There’s no doubt that a heightened level of pandemic property market activity has helped drive market performance in the North, but the Government’s plans to boost economic prosperity in northern regions via the launch of the Levelling Up Fund has also contributed to a more buoyant degree of market sentiment.
“While it’s still very early days in terms of money actually spent, the ongoing regeneration and investment of the North should help to further close the North-South divide going forward.
“Although with the gap remaining vast, it’s unlikely to tip the scales completely in the opposite direction.”
