The London wash out: The Midlands and the North

Tobi Ford-WesternThought LeadershipLeave a Comment

The High Street Group profit

“Time and time again, we see a suburban ‘wash out’ around the Capital. If house prices in central London rise, then they will essentially wash out to the areas around London.
What is interesting, however, is the effect that London property trends have on the UK’s second cities. Let’s take the Midlands and the North. Typical statistics show that these areas are around five or six years behind the London fluctuation.
It’s clear that the London property market is now slowing down, while contrastingly, we see property prices increase in the Midlands and the North. For this reason, less foreign cash is being poured into London, and instead into the Midlands and the North.
I believe that the Midlands and the North will continue this growth for the next three or four years before price rises begin to stagnate and perhaps even decline – essentially to the same status as we are seeing the London market in currently. At this same point, the Midlands and North may well be where the London market will be in 10-12 years.
The above is one of the factors influencing our process here at Avantis Wealth; this is why we are not looking at fixed investments in the London property market, but are currently focussing on second cities such as Liverpool, Manchester, Birmingham and Newcastle.
Long live the northern powerhouse.” – Tobi Ford-Western, Senior Investment Broker

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