Mortgage applicants in the north of England are more susceptible to fluctuations in the wider economy than other areas, claimed an industry expert.
Timothy Lambert, head of consulting at Ducalian, pointed out that costly neighbourhoods in London such as Kensington and Chelsea have a definite advantage over places such as Sunderland.
"Foreign money and high earnings will always keep prices stable and high. Whereas somewhere such as Sunderland will be much more susceptible to the UK economy as a whole and can paint a bleaker picture than it is elsewhere," he said.
His comments added weight to the opinion expressed by Liam Bailey, head of residential research at Knight Frank, in an interview with the Independent. Mr Bailey told the newspaper that the property market in London was equipped to weather any future housing crises better than other regions in the UK.
Mr Lambert also advised people looking to invest in properties to adopt a long-term view. Although, property prices are expected to rise in the future, anyone entering the segment with a two to three-year outlook is bound to be disappointed as housing costs will no doubt peak or fall in that time, he said.
According to recent data made public by the Land Registry, the average prices of houses in England and Wales rose by 0.1 per cent in June to reach £166,072. The statistics confirmed that house prices had climbed the levels recorded in the summer of 2006, with the annual change standing at 8.6 per cent.
It was also found that property prices in London increased by an average 12.2 per cent in the past year. On the other hand, house in the north-west of the country only saw a four per cent growth in prices in the same time-period. This also coincided with a small 0.7 per cent increase in house prices in the north-east.  |
0 comments
