House Price Update 9 November 2011

UK House Prices Situation: North-south house price divide biggest ever

UK House Prices Forecast: Unemployment and cuts will hit some areas hard

House Prices in South Twice Northern Average

The north-south divide is gradually reshaping the housing market, according to the latest figures from property website Rightmove.

According to Rightmove, the average house price in the south of England is now £336,743 – twice the average in the North (£164,347). Many northern areas are being hit hard by public and private sector job cuts, which have not affected the south to the same extent.

In October, average asking prices rose by 4.7% in the south of England but fell by 0.7% in the north, taking asking prices in northern regions back to levels seen six years ago, in May 2005.

While Rightmove claims that prices are rising in the south generally, the latest figures from RICS, which gathers data from estate agents, suggests that the only place in which average house prices are actually rising is London.

The RICS figures show that every single region of England, Scotland and Wales has seen average prices fall over the last three months, except London.

House Sales Edge Up In October

The number of houses sold in October rose slightly, according to the October RICS Housing Survey. Agreed sales rose by 2.2% from September to the highest level since April. The number of new instructions also increased slightly, halting decline seen over the last three months.

Although a majority of surveyors continue to report falling prices, three quarters of those reporting falls said that they were in the 0% - 2% range; most areas are not seeing the kind of dramatic falls which indicate widespread forced selling.

Read about UK House Price indexes / key statistics that track the ups and downs of house prices

Read our take on the Credit Crisis the effect on UK House Prices and Mortgages. A Special Report

.