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Divide between North and South house prices widens
03-01-2013 08:21
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The gulf in house prices between the North and South of England grew to its widest level yet in 2012, according to new figures.
The Nationwide building society's House Price Index showed the price of average home in the South was £95,000 more than in the North.
This was the biggest difference recorded by the index so far.
The average price of a home across the north of England, Yorkshire & Humberside, the north-west, East Midlands and West Midlands was £133,778, according to Nationwide.
This compared with an average of £228,257 across East Anglia, the south-east, London and the south-west.
In national terms, house prices in Northern Ireland suffered the most, falling by 8.2% over the year and ending 2012 more than 50% below their 2007 levels.
In England they registered a drop of just 0.4%, while Wales saw a 2.7% fall, and in Scotland prices were down 3.3%.
The Nationwide's latest monthly statistics showed across the UK average house prices fell by 0.1% in December, ending 2012 down by 1% on the year before.
The figures are drawn from Nationwide lending data for properties at the post survey approval stage.
The annual figure compares with official figures from the Land Registry, which shows prices rising 1% on average in 2012.
December's fall was the 10th monthly drop in a row and put average cost of a home in the UK at £162,262.
Nationwide Chief Economist, Robert Gardner, said market had put in a "relatively resilient performance" in light of the UK being in recession for much of 2012.
However, he said the outlook for house prices remained uncertain.
"Continued low interest rates and policy measures such as the Funding for Lending Scheme should provide some support," he said.
"But, with the economic recovery expected to remain fairly weak, the market is likely to be characterised by low levels of activity again in 2013, with prices remaining flat or modestly lower over the course of the year."
The cities with the biggest increases were Cambridge, which was up by 6% to £336,667 and Coventry, up 3% at £165,100.
The biggest fallers were Bradford and Manchester, both down by 9% to £145,478 and £171,830 respectively.
The Nationwide building society's House Price Index showed the price of average home in the South was £95,000 more than in the North.
This was the biggest difference recorded by the index so far.
The average price of a home across the north of England, Yorkshire & Humberside, the north-west, East Midlands and West Midlands was £133,778, according to Nationwide.
This compared with an average of £228,257 across East Anglia, the south-east, London and the south-west.
In national terms, house prices in Northern Ireland suffered the most, falling by 8.2% over the year and ending 2012 more than 50% below their 2007 levels.
In England they registered a drop of just 0.4%, while Wales saw a 2.7% fall, and in Scotland prices were down 3.3%.
The Nationwide's latest monthly statistics showed across the UK average house prices fell by 0.1% in December, ending 2012 down by 1% on the year before.
The figures are drawn from Nationwide lending data for properties at the post survey approval stage.
The annual figure compares with official figures from the Land Registry, which shows prices rising 1% on average in 2012.
December's fall was the 10th monthly drop in a row and put average cost of a home in the UK at £162,262.
Nationwide Chief Economist, Robert Gardner, said market had put in a "relatively resilient performance" in light of the UK being in recession for much of 2012.
However, he said the outlook for house prices remained uncertain.
"Continued low interest rates and policy measures such as the Funding for Lending Scheme should provide some support," he said.
"But, with the economic recovery expected to remain fairly weak, the market is likely to be characterised by low levels of activity again in 2013, with prices remaining flat or modestly lower over the course of the year."
The cities with the biggest increases were Cambridge, which was up by 6% to £336,667 and Coventry, up 3% at £165,100.
The biggest fallers were Bradford and Manchester, both down by 9% to £145,478 and £171,830 respectively.
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