Northern residential property value fall by 2 percent in 2009
Residential property values in much of northern England decreased by an average of 2 percent in 2009, according to data published by Nationwide. The organization found that there were significant regional differences when it came to home ownership and the buy-to-let sector in the different regions of the country. While values rose by a national average of 3.4 percent this past year, this figure was inflated by more significant property increases in both the East Midlands and in London.
Nationwide found that the average family home in the UK is worth £162,116, after the 3.4 percent increase measured in 2009. Some of the reasons why properties have performed so much poorer in the north than in the south not only have to do with higher unemployment figures, but the existence of an oversupply of new constructions. For example, newly-built one and two bedroom flats in Manchester brought property values down throughout the city, while also causing higher vacancy levels for residential landlords. But many of these property construction projects were put on hold this past year, and there are now far fewer new constructions. As such, 2010 may bring a modest improvement to northern cities.
While property prices increased modestly in parts of England, monthly rents have fallen since June, but only by a very minor 0.03 percent.