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Tale of two nations: House prices rocket to new high in London, slump in north

Economy:
Tale of two nations: House prices rocket to new high in London, slump in north

HOUSE prices have jumped to reach a new record high in London as demand continues to outpace supply.

But values ​​in the north fell over the last quarter and are still almost 10 percent down on the 2008 economic crisis.
As a nation property values ​​leapt to an average & pound; 204368 in June, up 5.1 per cent from a year ago, according to lender Nationwide.
Prices keep rising amid a huge drought in available properties for keen buyers, which is set to support prices in the coming months.
Month on month prices edged up another 0.2 per cent, following arise by the same amount in May.

But performance has been heavily split by region over the past quarter, said Nationwide.
Southern areas of England have recording the fastest rates of house price growth, with the Outer London clocking up growth of 12.4 per cent.
In the capital, values ​​soared by 9.9 per cent over the past three months- and are now around 54 per cent above pre-crisis levels, compared with 10 per cent for overall UK house prices.
In contrast, the North of England saw house prices fall over the quarter, with values ​​still nine below their pre-crisis peak.
Following Britain's vote to leave experts said it was difficult to predict how values ​​will react.

Robert Gardner, Nationwide's chief economist, said: "Ultimately conditions in the housing market will be determined by conditions in the wider economy, especially the labour market. It is too early to assess the impact of the referendum vote on the economy.
"However, it is encouraging that the labour market had remained robust in recent months, with solid employment growth and the unemployment rate declining to an eleven-year low in April.
" Borrowing costs also remained close to historic lows.
"Moreover, the lack of homes on the market - with estate agents continuing to report a record low number of properties on their books - will also provide underlying support for prices even if demand softens."

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01 July 2016, 9:23