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Riches
in the East
Which
parts of the UK
are experiencing
the biggest increases
in property prices?
Source: Halifax
reports
UK
house prices are
continuing to rise,
recording a 4.3%
increase in September,
according to the
latest report from
the Halifax. The
East Midlands has
taken over from
East Anglia as the
UK's property hotspot,
with prices rising
by 38% over the
last year. Here
are the latest regional
increases over the
past 12 months:
East
Midlands +38%. South
West +26%. North
West +21%. West
Midlands +21%. East
Anglia +21%. South
East +20%. Yorkshire
& Humberside
+19%. Greater London
+18%. North +16%.
Wales +10%. Scotland
+7%. Northern Ireland
+5%.
The
latest report also
shows that the average
property price in
both the East and
West Midlands has
now breached the
£100,000 mark. In
Greater London,
the average price
is now over £200,000.
Prices in London
are steadying, though,
as shown by the
region's eighth
place in the table.
However, prices
in London are still
83% higher than
the UK average.
Average
house price to reach
£1 million?
A
recent report by
the Halifax states
that the number
of homes sold for
more than £1 million
is set to double
within the space
of just three years.
In 1995 just 232
£1 million+ homes
were sold. By 1999
the figure had increased
to 1,305. But that
figure is increasing
exponentially and
by the end of this
year approximately
2,600 £1 million
properties will
have been sold in
England and Wales.
Unsurprisingly
the South East accounts
for most sales exceeding
the £1 million mark
with 1,624 in London,
and 615 in the rest
of the South East.
Wales, with just
2 sales in 2001,
and Yorkshire and
Humberside, with
3, bring up the
rear. In London,
quite remarkably,
1 out of every 100
homes sold costs
more than a million.
It
may take only another
50 years before
the average house
price hits £1 million.
If house prices
rise at 4.5% over
the next 50 years
they will cost on
average £1 million,
but London will
break that barrier
much earlier - in
2039. So your grandchildren
might have a huge
mortgage on their
hands!
Which
region has seen
the most growth?
The most expensive
counties in which
to live are Greater
London, Surrey,
Berkshire and Hertfordshire.
South Yorkshire
and South Humberside
are the cheapest.
These match the
statistics on £1
million+ sales,
but what is perhaps
more interesting
is that although
London is the most
expensive area,
its prices have
not risen as fast
as some other areas
since the dark days
of 1987.
The
average property
in County Antrim,
Northern Ireland,
has increased by
a whopping 213%
since 1987, whereas
London prices have
only increased by
a comparatively
modest 156%. If
you had bought a
house in County
Antrim for £50,000
in 1987 it would
now be worth £156,500,
wheareas your London
property would be
worth £128,000.
County Down, also
in Northern Ireland
is in second place,
with Shropshire,
Cheshire, and North
Yorkshire filling
the next positions.
Oxfordshire, in
6th place, saw the
biggest increases
in the southeast.
The slowest growing
areas are Tayside
in Scotland and
Northumberland where
increases have been
73 and 77% respectively.
What
does this tell us?
The really canny,
or lucky investors,
have not necessarily
been those living
in the most expensive
areas of the country.
For those of you
who bought in County
Antrim, your house
might not be worth
a million, but a
213% increase over
14 years is something
even an investor
like Warren Buffet
would be proud of!
Please
note that articles
on MSN Money do
not constitute regulated
financial advice,
which recommends
a course of action
based upon the specifics
of your personal
circumstances. The
articles are intended
to provide general
personal financial
information. We
urge you to consult
an Independent Financial
Adviser (IFA) before
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decisions about
your finances. Call
0117 971 1177 for
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IFAs in your local
area. Any statement
regarding financial
services products
and tax liability
is based on legislation
and tax practices
as at 1 January
2003, which is,
of course, subject
to change.The value
of any tax benefits
or reliefs depends
upon the individual
circumstances of
the investor.When
investment performance
is mentioned you
should remember
that past performance
is no guarantee
of future performance.
Where products have
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