London home owners are selling up & moving North
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Are house prices lower in the North?
The average stamp duty is nearly 3 times higher in the South than it is in the North.
A study by Hamptons International has found that since 2010 the proportion of London homeowners looking to the Midlands and the north of England has tripled. Why? Because it means more bang for their buck when compared to the competitive nature of the market within the capital.
The first half of 2018 saw 20% of London house owners who left the capital relocate to the Midlands or the North of England- a rise of 6% in the past decade.
It isn’t just because they’re receiving better value for their money, either. The higher cost of stamp duty is also putting those on the property ladder off the capital. The average stamp duty cost in the South of England is £14,780 compared to just £5,358 in the North.
Aneisha Beveridge, research analyst at Hamptons who conducted the study, said “More people are making a bigger move and buying a larger house sooner to avoid having to pay stamp duty on additional moves as they trade up. For many, this means heading further north.”
Entering the market
Surprisingly, the total number of London property owners leaving the capital is just 30,280 according to Hamptons. A small figure when compared to the city’s 8.8 million population. The majority of leavers look to the home counties for their next purchase, but the number looking to move North, to the Midlands or North West has surged. Around one in 17 made the move North in 2008; now the figure is one in five.
Hamptons also found that one-third of young people in London were not able to purchase their first house in the capital forcing many to turn their heads to the North when looking to join the property ladder. Director and owner of We Buy Any House, Mike Patterson, believes Northern cities have much pull than the capital – “The north is becoming a much more attractive prospect for young professionals not only looking to find work, but to invest in their first house. Jobs, affordable properties, and social factors now dictate where they move to – and many find London too inhospitable on all three fronts.”
The CV Library found that Manchester experienced a 15.3% growth in jobs over 2018, making it the second best city behind Brighton to find work. And it’s not the only northern city with ample opportunity for those looking for work. Sheffield, Birmingham, and Leeds all enjoyed growth in job opportunities over the past year, making Northern cities a much more attractive alternative for first time house buyers.
The big issue it seems is the first-time deposit for those looking to enter the market. In London, that deposit is currently a staggering £114,942 – enough to buy a 4 bedroom terrace in the North. The average deposit for a house in the North West in 2017 was £35,078 – a significantly lower amount than that of the capital.
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