In the past, the north south divide was characterised by soaring London prices, outpacing the rest of the UK. However, the UK is experiencing a ‘reversal of the two speed market’, according to Richard Donnell, Research and Insight Director at Hometrack.
Northern cities and the Midlands are now growing much faster than London with house prices growing faster than earnings.
According to recent data from Hometrack, Manchester has the lowest level of discounting in the at just 2%, suggesting house prices will continue to grow, according to Richard Donnell.
Changes to the mortgage interest tax relief for buy-to-let investors, who can no longer offset all their mortgage interest against their profits, has ‘made investors think twice about investing’ according to Richard Donnell.
Prospects for rest of 2018
According to Donnell, the rest of 2018 will see further grow in north of England, with growth in London tracking sideways.
Although there may be a slight improvement in housing turnover, overall it will remain relatively flat, with signs of hope that turnover may pickup in London.