House prices: last two regions recover to pre-2008 peak as North-South property gap closes

According to new figures, house prices in all regions of the UK have returned to pre-financial crisis levels 14 years ago. The average house price reached?290,261 at the peak before the financial crash and was back at that level by 2010. Prices in Durham have now reached?122,300, while Hartlepool is back to?133,000 after the pandemic. The crash of 2008 saw property values fall to their pre-2008 peak in September 2007. Prices in Durham now stand at?122,300 while Hartlepool’s are back at??133,000 after the pandemic. The UK’s last two major cities to fully recover from the crash were Durham and Hartlepool. Windsor, Maidenhead and Chichester, as well as Brighton, all recovered within five years. “Hartlepool, Durham and Blackpool are the two last areas of the country that have reached this level. Middlesbrough and Blackpool only recovered in the past month. “There is a North-South divide in terms of recovery. London and other southern cities are recovering quickly while the northern areas are still behind. “North-South house prices divide to narrow Lawrence Bowles from Savills, director of residential research, said that the north-south gap in house prices will close more given where we are in this housing market cycle. “There is still more affordability cushion than in London and the South. The Government’s levelling up agenda has the potential for accelerating a rebalancing. But only if it gains significant traction. “”The potential price growth in London’s mainstream market is less than expected (+2% in 2022). This is due to the fact that it is more restricted to more wealthy households. This is due to the extent that London prices have been dislocated from the rest UK housing market by strong price growth between 2005 and 2016, something so significant it is expected to limit price growth across large areas of the capital a decade later. “READ MORE
In the next five years, the average house price will increase by more than?40,000
London house prices: Home sellers in London made an average of?198k profit in 2021
London house prices: 16 London neighborhoods with a buyers’ market
According to Savills, London’s prime market will continue to buoy house prices. Marcus Dixon, head research at LonRes, said that buyers in 2021 bought larger houses and spent more. The total property spend in 2021 surpassed?11.6 billion, which is the highest annual amount since LonRes records began back in 2000. This sum was more than half of the total spent on houses. The 2021 house sale value was?6.1 billion, 26% more than the 2014 record.