Is the price of house in small towns still declining?

eloy7

As I checked the price of house (2 bed terraced) in North East, there is a general pattern.

In big cities: the price was significantly increasing since 1995 to 2008. After the global crisis, the price was declining. However, from 2011-12, it is rising again.

In small towns (villages): the same pattern until 2011, but instead of rising, the price is remained steady low.

Was my observation correct?

If yes, why the price has still remained minimum in small towns? Will it continue? or they have not passed the economic crisis yet?

Generali

In the North East I suspect the problem is that they had massive levels of Government spending propping up regional GDP because Labour wanted to regenerate the region or buy votes depending on who you ask.

As soon as any kind of brakes were put on Government spending, the economy of NE England was always going to be a train wreck. If you get the actual austerity the Tories are promising this time rather than the not austerity that the coalition Government had then the economy of the NE and much of the NW is going to be in a lot of trouble I suspect.

Mistermeaner

Why the nw? It's ok here

caronoel

In the small town I live in in the South East, house prices are up 40% from their pre-2008 highs, and 10% up on last year.

kabayiri

ggb1979 wrote: »

Why the nw? It's ok here

I think NW is like a lot of regions, ie very uneven and peaky.

Take the NW. Demand for property in small villages in the high peak is strong, but you can travel just a relatively short distance and find much cheaper property.

London seems to be an exception, with high demand which has spread to all boroughs there. Is this linked with high mobility and work availability?

HappyGo

I've spotted a difference over the past 10 years. Especially around Manchester. I guess my parent's generation liked to live further out of the cities and commute. Something that everyone was doing. I mean, cities just weren't places you'd ever consider living 10-15 years ago.

These days, people don't want the commute. They want to have easier lives. Want to be nearer the action. Most of the people I know live in or around cities. That's where house prices are highest. Whereas, at my parent's village - house prices have gone down significantly, and properties just aren't selling.

TheBlueHorse

just anectdotal but my house has risen approx 20% in the 10 months since I bought it - going by recent sales on the street (not asking prices). This is North London.

IronWolf

London's just mental, I mean I can't even understand why people are paying so much to live in far out places like Balham when zone 1 is almost the same price.

kabayiri

TheBlueHorse wrote: »

just anectdotal but my house has risen approx 20% in the 10 months since I bought it - going by recent sales on the street (not asking prices). This is North London.

You need some heavier weights to stop it rising further.

padington

TheBlueHorse wrote: »

just anectdotal but my house has risen approx 20% in the 10 months since I bought it - going by recent sales on the street (not asking prices). This is North London.

its gone banana's hasn't it? I bought a two bed house near the 290k mark four years ago. Now a two bed flat's going for £469'000. Places same as mine now going for £560k.


Value parts of north London seem to just keep powering ahead.

HappyGo

We bought a house in South Manchester in March. There were seven offers on the first day of viewings, one of them being from us. It went to sealed bids. We won, and ours wasn't the highest - even though we went £20K over the asking price?!! And since we've been checking the housing market, similar properties on the street have gone up another £10K. And this is Manchester... not London!!