Buyers head for cheap houses in the north

SmartNewHomes.com have revealed that escalating house prices are pushing new home-buyers out of the south and into the north.

The average price of a new home in London was recorded as £427,875 in October, having grown 14% since the previous year. This positive growth in house prices has been echoed by both the South-East and South-West.

As a result many new home buyers are now looking to move further north where prices remain competitive and living costs often prove more affordable. The average price of a new home in the north actually fell in October, down 0.3% on the previous year, recorded at £215,834.

While London and the south experienced outward migration in October, as many buyers look to move out of the area, the north experienced an increased number of new home-buyers searching for a property in the region.

David Bexon, managing director of SmartNewHomes.com, says: “The average price of a new home across the UK was up 0.5% over the last month, with prices exceeding those experienced at the same time as last year.

“Meanwhile, the average price for a new home in the north has remained relatively low, despite increased interest in the area. Many new home buyers, particularly those at the lower end of the market looking to take their first or second step on the ladder are getting priced out of the south and are turning to the north which offers them a wider range of properties that still fall within their budget.

“However, as the continued interest in the northern housing market looks set to continue, I would expect to see marginal price rises over the coming year to reflect this.”