New figures show clear north-south property divide

Published on 19/06/2012 13:29

THE north-south divide in the UK property market was in evidence again today after figures showed prices increased 1.4% in the year to April.

• Improvement in house prices driven by London, which saw a rise of nearly 5%

• Biggest decline in property prices seen in Northern Ireland

• Average house price in Scotland standing at £178,000

The improvement was driven by London, where prices were up nearly 5% in the year, and by more modest gains in the South East and South West.

This was offset by declines in Wales, Scotland and Northern Ireland of 1.1%, 0.3% and 8.1% respectively, while the largest decreases in England were 1.3% in the North West and Yorkshire and Humber, the Office for National Statistics (ONS) said in its monthly house price index.

On a seasonally adjusted basis, UK house prices were up by 1.1% between March and April, reversing a decline the previous month.

Average house prices in April stood at £237,000 in England, £151,000 in Wales, £129,000 in Northern Ireland and £178,000 in Scotland. London’s average price of £388,000 contrasts with the North East, which has England’s lowest average price at £145,000.

The ONS added that the average price of new dwellings rose by 5.1% during the year to April, while the figure for pre-owned homes increased by 1.1%.

The end of a stamp duty holiday for first-time buyers in March meant the proportion of homes bought by this section of the market fell back to 32% in April, from 43% the previous month. The prices paid by first-time buyers were 1.5% higher on average than in April last year.