The UK is currently experiencing a large divide when it comes to property prices, as prices in the South have soared but Wales, the Midlands and the North have all seen a dramatic decline.
According to dailymail.co.uk, new research from the Smith Institute think tank has revealed that certain London hotspots have seen property prices rise by 43 per cent since the supposed peak in November 2007.
For example, houses in the City of Westminster have risen by 43.2 per cent, meaning the average house price is now £863,256. The situation is even better for property owners in Kensington and Chelsea, as the average house there is now worth £1,171,320 – a rise of 42.8 per cent.
In comparison, Blanenau Gwent in Wales has seen its property prices decline by 47.7 per cent during the six year period. Hartlepool in the north-east has experienced a similar decline, with house prices dropping by 41.9 per cent, reports theguardian.com.
Paul Hackett, director of the Smith Institute, said in the report that uneven economic development is part of the reason for the dramatic divide.
“What we have witnessed over the past six years is the growth of two distinct and divergent housing markets: a London-centric property market where house prices have recovered and in some cases soared; and the rest of England and Wales where prices are flat and transactions are low,” he explained.