The recent confirmation from the Office of National Statistics that the UK economy is once again in recession will come as no surprise whatsoever to those who live and work outside of the relatively buoyant south east of England region.
The impact of this economic downturn on the demand to buy, rent and develop property is reflected in the housing and commercial property market data which we report on each month. And as we have reported on more than one occasion, there is a clear North/South divide reflected in the average length of time that it takes to sell a property and the sale prices being achieved by vendors.
The McHughs auction report inside this edition on page 39 underlines the divide that now exists as sold prices at auction of inner London property are often well above the set reserves, which the latest Savills auction in London on 9th May also confirmed.
In sharp contrast, the results seen at recent property auctions in the North of England underline that buyer demand in some locations there is not so healthy as lower end properties in particular are seeing nominal falls in value of between 20-35% since the market peak in 2007.