November slowdown reduces North South divide

Robyn Hall

December 3, 2012

It said the gap between asking and achieved prices in the North was closing which was reducing the downward pressure on pricing.

And the slowdown in demand over the last five months has been less pronounced in northern regions while above average falls in demand for housing in southern England has reduced the upward pressure on prices.

Richard Donnell, director of research at Hometrack, said: “There is evidence that the performance of housing markets in the north and south of the country is starting to converge. Demand has fallen by 4% in the North compared to 12% in southern regions where the market has been more buoyant.”

The findings also showed the number of new buyers registering with agents dropped by 0.8% while property listings fell 0.6%.

And house prices fell by 0.1% for the fifth consecutive month in a row and were down by 0.3% over the last 12 months.

Donnell said: “November’s house price survey of 1,500 agents and surveyors across the country shows a continued slowing of the housing market as the seasonal slowdown approaches. After a strong start to the year prices continue to drift lower.

“However the slowdown in the housing market over the final half of 2012 has been less pronounced than that seen over 2011 despite pressure on household incomes.

“Tightening supply combined with low levels of new housing have been an important support to pricing levels nationally.”

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