Lower average house prices, a stable property market and increased interested from investors – is the north of England on the right side of the divide?
Investors are looking to the north of England as a stable property market and a flurry of private sector activity provide the potential for substantial profits.
Following a recent report from accountancy firm PriceWaterhouseCoopers, UK chairman Ian Powell said that Yorkshire is the country’s fastest-growing region for “private equity” deals, indicating professional investors are predicting big profits.
The survey also reported high levels of private sector activity in the North East, including job creation, and “double-digit growth” in the firm’s activities, reflecting ramped up confidence in retail and manufacturing in Manchester, Leeds and Newcastle in particular.
House prices three times lower than London
With house prices almost three times lower than in London, the north is an increasingly attractive place to live for first-time buyers, recent graduates, families and buy-to-let landlords.
Driven up by the flood of foreigners into the London market, properties in the capital rose in value by over 10% last year, compared to almost 1% in Yorkshire and Humber.
According to the BBC, the average house price in October 2013 stood at £146,765 in Sheffield and £475,940 in London.
Henrie Westlake of property consultants Knight Frank said that “Yorkshire can offer much more stability” than prime London commercial property, which has witnessed “huge swings” in value in the past 20 years.