Homes that are situated in Glasgow and Liverpool are 75 percent cheaper than those in London. Reports have shown that the average prices paid by property owners in London has just hit record high which is approximately 12 times earnings. The gap between the prices for those houses in the country’s capital compared to other big cities in UK is its widest within the span of 20 years.
Despite the recent reports that there is a slowdown in the London property market, the monthly survey still shows that there is indeed a huge difference when it comes to the average prices of the housing properties in London and other capital. This gap continues to grow. The report released highlighted that the widening gap of the prices is leaning towards an overvalued property market in London.
The figures released were based on Land registry information and data taken from mortgage valuations. Accordingly, the average price which is paid in London is about 437,ooo pounds while in Glasgow, it is only as much as 107,300 pounds and in Liverpool, 109,000. The staggering differences in the figures can be quite alarming. However, survey has also shown that though the properties in the capital are very much overvalued, a lot of potential homeowners are continuously scouting the place and hoping to get a house of their own complete with cloakroom vanity unit for their bathroom and other amenities.
The report also shows that half of the buyers during the first half of the year really had no property to sell. This particular change in the mix of purchasers placed an upward pressure to the prices of houses. The report likewise echoes the results of other recent surveys which show that a shortage of properties will soon befall the market. The Royal Institution of Chartered Surveyors has already informed the public of several months with listings falling.
Across the 20 biggest cities in UK, the surveying group said that the prices have relatively increased by about 8 percent. However, behind this headline was a picture that was uncertain. In Aberdeen alone, the prices for houses dropped by about 2 percent over the last year.