Those looking for their next property investment project may want to head up North if they want to get more for their money. Figures from the Land Registry have shown that the real estate chasm between the North and South of the country is widening and the cost of a London flat is now enough to buy a home in other parts of the UK, such as the North East. This is reflected in the performance of homes in Britain's most exclusive neighbourhoods - most of which are in the capital. According to recent figures, property prices in prime postcodes have soared by a record breaking GBP 120,000 over the last year.
This is the price of many homes in the North of the country and means that those living in Kensington or Chelsea could purchase a property just with the money with which their home appreciated over 2012. In these areas, the average value of a home rose by nearly 12.5 per cent - GBP 118,754. The Daily Mail revealed this is more than a full-time worker on the national average wage of GBP 26,462 earns in four and a half years. Kensington and Chelsea are now the only parts of the UK were the average cost of a property is over GBP 1 million, standing at GBP 1.08 million.
In comparison, the average cost of a home in the North East is GBP 99,294 and GBP 106,527 in the North West. Mark Harris, chief executive of mortgage broker SPF Private Clients, told the newspaper: "There is an extraordinary difference between the housing market in London and the rest of the country. While areas such as Kensington and Chelsea storm ahead, house prices in the North of England are in reverse as the gap between north and south grows ever wider."
While this is good news for London investors and signifies the capitals continued commercial success, for those looking to get on the property ladder in the capital, the news will not be welcomed. A report from the House Builders Association recently revealed that in London it will take the average first time buyer 24 years to save for a deposit.
- Monday 04 March 2013