North or South Falling the Most?

rumbaba

Hello everyone.

I'm fairly new to this site although I have been a reader for some time. I was just wondering if there is a north/south divide between the levels that have dropped in the property market.

I may be wrong but it does seem by reading on here that the north is getting hit harder than the south. Is that right? And if so, why is that the case?

Rumbaba

MissMoneypenny

rumbaba wrote: »

I may be wrong but it does seem by reading on here that the north is getting hit harder than the south. Is that right? And if so, why is that the case?

Rumbaba

In the part of Yorkshire I use to live in, houses went up by 300% in 9 years. In the same area, 2 years ago I saw computer programmer jobs advertised for just 11K.

Now that mortgage lending has returned to normal (a deposit and proof of income is needed), people can't afford to pay those high prices now.

Chris2685

Interesting, because the same job I do now in London is advertised in Bradford for exactly the same rate, yet cost of living in Bradford is much less, and house prices are roughly 3-4x less!

turbobob

There is some information on regional differences in the Nationwide Quarter 2 report. http://www.nationwide.co.uk/hpi/historical/Q2_2008.pdf This shows that the hardest hit region, by a long way, is Northern Ireland (unsurprising as the market there completely overheated in 2006~2007). The region least affected is Scotland. According to this report falls have been higher in the north of England than the south. But things are rapidly changing, so this could be out of date now even though it was just released a couple of months ago.

You can also get customised reports from the Land Registry to compare specific towns or counties here http://www1.landregistry.gov.uk/houseprices/housepriceindex/report The Land Registry data tends to lag data from lenders by a few months I think.

MissMoneypenny

Chris2685 wrote: »

Interesting, because the same job I do now in London is advertised in Bradford for exactly the same rate,

What job is that?

Chris2685

MissMoneypenny wrote: »

What job is that?

IT Desktop Support.

ad44downey

Rightmove recently reported that asking prices in London dropped more than 5% in just one month. So the South has probably caught up with the house price falls seen in the North

Generali

The North East is super screwed in my opinion. The Land Registry enabled me to produce this graph from their figures:



The North East gets most of its GDP from Government spending. As the economy falters in the rest of the UK, lots of that spending is going to be diverted. At that point house prices will collapse in the NE of England.

ManAtHome

MissMoneypenny wrote: »

In the part of Yorkshire I use to live in, houses went up by 300% in 9 years. In the same area, 2 years ago I saw computer programmer jobs advertised for just 11K

Doubt it was a real programmer job (unless they're still waiting for applicants) - plenty of companies in West Yorkshire paying nearly twice that for grad trainees and struggling to attract staff.

fishtastic

Chris2685 wrote: »

IT Desktop Support.

I work in Finance/IT and I earn, in Liverpool, about the same as I would in London, but with the obviously lower coast of living.

Fishtastic

Edale

Generali wrote: »

The North East is super screwed in my opinion. The Land Registry enabled me to produce this graph from their figures:



The North East gets most of its GDP from Government spending. As the economy falters in the rest of the UK, lots of that spending is going to be diverted. At that point house prices will collapse in the NE of England.

Generali, I read your informed posts with interest and have learnt a lot from you. What I don't understand here is why the NE should be affected so much more than SE. Surely Government expenditure is committed for the next few years and so that tap will not just switch off, the government will kindly borrow on our behalf to keep their spending plans. If (or should I say when) we do go into recession, with the financial sector especially affected, then surely the SE and London will be more constrained as they are more reliant on private businesses which will stop spending/investing/employing. Simply look the contraction in the Estate Agency business and the amount of business lost in the NE compared with the SE must be less even on a per capita basis.

I also think that this government's massive increase in expenditure in education and health will mean that this will now form a huge part of the government spending in the NE. I am sure the amount spent per person in the NE on education and health is similar if not more than the SE, this money will not disappear so where will they cut back? The reason government expenditure is such a large part of the economy is there is not the service sector of the SE or industry any more but this should mean it will perform better in a recession.

I know you have said this a few times before and I have tried to work out your rationale but I struggle. I also know you will come back with a well structured response.