British property prices flat in 2011 but regional divide widens

Published by Jon Land for 24dash.com in Housing

Average house prices in Britain have remained mostly flat in 2011 while the division between North and South has widened, according to figures released by property website Zoopla.

The average house price finished 2011 at £221,331, down a modest £854 (0.23%) from the same time one year ago.

But regional contrasts have widened. In England, property values have risen over the past 12 months in London and the South East whilst falling substantially in the North. The average home in London is now worth £416,890 up 2% on one year ago.

The North East was the worst performing region over the past year with average house prices falling £9,596 (6%) to £156,659.

Nationwide, the best performing region was Scotland, where property values now stand at £164,844, an average increase of 7% from 2010. English and Welsh property prices have remained mostly stable during the same period.

The best performing city in 2011 was Wigan, with property values climbing by 6% in the year. In contrast, homeowners in Newcastle saw an average decline in property prices of 5.5%.

Nicholas Leeming of Zoopla.co.uk commented: “National statistics on the housing market can mask differing fortunes in different parts of the country. Londoners continue to see the market go from strength to strength with high demand for a limited number of properties boosting house prices.

“However, for areas such as the North East where the local economy has suffered more than most, it’s a different story. 2012 does not show much sign of being markedly different to 2011, however, if the overall economy starts to show signs of strength this will filter quickly through to the property market.”