Two homes on Hazelwood Road, one in east London and the other in Wigan, illustrate the stark regional differences in the UK housing market. The London property, a two-bedroom ground floor flat in Walthamstow, is on the market for £325,000. The Wigan home, a four-bedroom detached house with a conservatory and garage, is listed at £239,950 — £85,000 less.
Official figures from the Office for National Statistics show UK house prices rose by 8% in the year to March, but London saw a 17% increase while the north-west recorded just 3.1% growth. The Land Registry also reported a 17% annual rise in London, prompting concerns of an overheating market.
The London flat's owner, who bought it for £140,000 in 2002, says the price is right to sell. Nationwide chief executive Graham Beale predicts a natural correction in London prices, but adds there is little sign yet. He expects the gap between London and elsewhere to narrow as other regions pick up.
In Wigan, estate agent Andrew Regan describes the market as vibrant and balanced, with modest price growth and plenty of new-build developments. He notes that 18% more properties are on the market than last year, though values remain below their 2007 peak. Help to Buy has also boosted first-time buyer interest.
Academics warn of social implications if London prices continue to outpace incomes. Bill Davies of IPPR North highlights mobility issues for key workers, while Kath Scanlon of the London School of Economics points to the concentration of economic activity in the capital, unlike the US where power is more dispersed. She adds that new London apartments often attract overseas investors rather than families.
