North-South split grows as London house prices climb

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Further evidence of the widening North-South divide in house prices emerged today as a national survey reveals that three-quarters of the postcodes registering price rises are in London and the South-East.

However, that doesn't mean an uplift in the property market as just 14.8 per cent of postcodes across the country registered price rises in February. Meanwhile, 8 per cent saw prices fall.

The figures are published in the latest Hometrack housing survey, which reports a negligible 0.1 per cent increase in prices over the month.

The research shows that almost half of London postcodes – 48 per cent – registered an increase in values over the month while 26 per cent of South-East postcodes had positive figures.

Richard Donnell, director of research at Hometrack, said London and the Home Counties had the greatest mismatch between supply and demand. "Domestic markets such as Southwark, Ealing, Merton and Bexley all saw above average house price growth," he reported.

"Meanwhile, prices remain under downward pressure in northern regions, where the trend is tipped towards price falls."

Prices slipped by 0.2 per cent in the North-East, 0.1 per cent in the North-West, and 0.1 per cent in Yorkshire & Humberside. In London, they climbed by 0.3 per cent.