According to a Woolwich report, a new north-south divide will emerge in the future as the number of households rises by 17.5% by 2025.
The report, which investigated house price inflation, earnings growth and changes in the housing stock, found that first-time buyers wanting to live in the south-east would be hardest hit. The study found that the number of homes in the south-east under the average house price of £150,000 would drop from 45% in 2005, to just 15% in 2025. On the other hand, people living in the West Midlands would be better off, as they would be able to afford up to 60% of the homes in the region in the future, compared to just 45% now.
Our view
Is quality of life actually better outside the south east because people can afford more - even afford more for cars, holidays homes etc?