Will the North-South house price divide reverse again after Brexit?

Discussion in 'General Property Investment Discussion' started by PostBrexitInvestor, Nov 5, 2018.

  1. realdeals

    realdeals Active Member

    Once the UK economy is back on an even keel we will see the North-South divide widen yet again. In my view, Brexit is a short-term economic situation which will be resolved very soon. As a consequence, growing incomes in more economic active parts of the country, such as London and the South, will create pressure and competition for houses. Thereby pushing up prices.
     
  2. FWL

    FWL Member

    As soon as the economy "returns to normal" we will see a further widening of the North South divide. Until more public services and private companies are located in the North of the country there will be no real long term change.
     
  3. Longterminvestor

    Longterminvestor Administrator

    I always thought that the so called "digital age" was going to narrow the North-South divide across so many areas such as employment, property prices, etc. I think this is just a short term narrowing before we get back to "normal".
     
  4. With the likes of HS2 not at least help bridge the North South divide?
     
  5. Longterminvestor

    Longterminvestor Administrator

    I have just read some articles about Birmingham - seems to be THE property market to be in just now. There will always be a cultural North South divide but I think we might see a reduction in the financial gap.
     
  6. Longterminvestor

    Longterminvestor Administrator

    Brexit is turning into a disaster for the government - I can see article 50 being revoked. We are literally looking into the abyss.
     
  7. FWL

    FWL Member

    The biggest threat to the UK housing market at the moment is this Tory infighting. Theresa May has been holed below the waterline and there is no way back for her now. She is a zombie PM with no power and no control. I fear what might happen next to the UK and this farcical Brexit situation. Don't be surprised to see the EU attempt a power grab and cancel Brexit - unchartered waters now.
     
  8. More and more people are now seeing better value in terms of capital values and rental yields outside of London. Whether this will seriously dent the North-South divide in the longer term remains to be seen. Personally I think we are starting to see the seeds of change but there will always be a North-South divide on property prices simply because London/South will always be the engine room of the UK economy.
     
  9. Adrian Elford

    Adrian Elford New Member

    The residential property market is cyclical with more ups than downs in the long term.
    Two things seem to happen time and time again.

    1. The South East and particularly London are the more volatile movers - up and down
    2. Investors or homebuyers see better value in areas outside of number one in times of turbulence
    On top of this, we are seeing improvements in infrastructure in the midlands and North West that are bolstering attraction and hence prices in those areas.

    I still see very low growth in the South East for some time (slightly minus in London) even with a 'soft' Brexit. I see the aforementioned positive areas still enjoying better than UK average growth.

    I can't see 'full' optimism returning to the housing market until the low 2020s.
     
  10. Longterminvestor

    Longterminvestor Administrator

    I think what we tend to see with London and the South East is a build up of froth on property prices in the good times then this froth, and the natural drift in prices, can equate to quite a large fall compared to the rest of the country in any downturn. However, history shows that these two areas also rebound the fastest. Its all about timing!

    In essence, London and the South East are great for long term capital appreciations while the Midlands/North offer some good long term rental yields and steady capital growth.
     
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