Regional gulf in house prices revealed

Friday, 07, Sep 2007 09:44

Average property prices in the wealthiest areas of the country are up to ten times more expensive than those in the poorest, according to research released by property magazine Chesterton.

The average price in the Royal Borough of Kensington and Chelsea was £806,057, ten times higher than the average of £77,509 recorded in Merthyr Tydfil, Wales.

Prices in Kensington and Chelsea have risen 31.2 per cent since August 2006.

Chesterton collates statistical information leading property organisations, including RightMove.co.uk, the Land Registry and Nationwide, to calculate a more comprehensive understanding of the market.

Using this method Chesterton found the average property price in England and Wales to be £197,326.

However, among unskilled manual workers the average price paid for a property was £109,131.

And while the organisation found average property prices had increased 9.6 per cent since July 2006, there were variations based on price.

While property in the top 20 per cent of the housing market had increased by 14.1 per cent, property priced in the bottom 20 per cent of the market saw only a seven per cent increase.

There were also regional variations.

Prices in Yorkshire and the Humber fell by 0.5 per cent during in August, compared to an increase of 1.9 per cent in the north-east, with the region registering a nine per cent increase annually.

Chesterton also found the price of property owned by retired people increased 8.9 per cent in the twelve months to August 2007.