Prices have fallen in every region of the UK since the peak in 2007, with property values in Northern Ireland crashing by 53% however greater falls have been in the North of the UK than the South.
To live in the South, house buyers are paying a premium of nearly £100,000 more on the price they would expect to pay in the North. The research was carried out by the Nationwide Building Society and found that currently, the average house price in the South costs £231,245, compared to £135,340 in the North.
Robert Gardner, chief economist at the Nationwide, said, “Labour market developments will remain of paramount importance in deciding the trajectory of house prices. There are grounds for caution on this front as the unusual combination of rising employment and declining economic activity that was evident in the first half of 2012 is unlikely to be sustained.”
Ed Stansfield, chief property economist at the consultancy Capital Economics added, “It certainly seems as though the housing market is one area where there is precious little evidence of ‘green shoots.’ Given the fragile nature of the economy, the huge squeeze on real incomes and offsetting impact of ultra-low interest rates, this gradual downward drift in house prices makes sense.”