Real house prices on the decline in over half of wards in England & Wales

Real house prices on the decline in over half of wards in England & Wales

A new study from the BBC in conjunction with the Open Data Institute Leeds has revealed that once you factor in adjustments for inflation, real house prices across 58% of wards in England and Wales are actually lower than they were in 2007.

The main areas where this has happened include the North East, North West, Yorkshire and Humber and Wales, where real house prices have declined by 10% over the last ten years.

Conversely, despite recent declines in London house prices, they have still increased in the capital over the last decade and the South East and East of England have seen increases as well.

Analysis of the study confirms there is a definite North-South divide when it comes to real house prices. The housing market in Wales and the North of England has struggled over the last 10 years to recover from the credit crunch whereas London and the South East has been more resilient.

Director of residential research at Savills, Lucian Cook, said: “Over the course of the next two years, given the amount of underlying economic uncertainty, it’s difficult to see strong house price growth anywhere across the UK. It will be interesting to see what happens thereafter and then it depends on increases to interest rates.”

There is a strong demand for rental property across the North of England, so for investors looking to the long-term and focusing on buy and hold strategies rather than capital growth, there are plenty of buy-to-let opportunities at the moment where houses can be picked up for a good price.

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