The north-south divide may be centuries old but it’s still alive and well. Especially when it comes to purchasing property. The latest figures and trend reports show that first time buyers are better off up north.
Or are they?
In the short term, that may still be true. It doesn’t take the brain of an economist to recognise that you still get more for your money north of London. It’s no coincidence that all of the top 10 cheapest places to live in the UK are located in the north or Midlands. Or that the top 10 most expensive areas are still in and around London. The quality of housing is the same across the country but the prices are more affordable in the north.
So far, so simple.
Not necessarily. There is a potential fly in the ointment.
First time buyers are better off up north – unless down the line they decide to move south. I’m not just talking about moving to London. It can be incredibly difficult to relocate from, say, Newcastle to Kent. Even if you do make money on a sale, it may not be enough to cover the shortfall and purchase a similar property.
Job availability is another factor to take into consideration. Securing employment can be difficult for first time buyers intending to relocate to the north. It may look like a great idea on paper but the reality is that the current economic climate is making it difficult for many to find good jobs.
First time buyers are better off up north when it comes to affordability. However, if you are weighing up the pros and cons of relocating to get a better deal, it pays to take the long-term view.