2002 to 2006 is the only period in the last 20 years when house prices in the North and Midlands grew faster than London
It’s no surprise that house prices have grown faster in London than anywhere else for almost all of the last 20 years. But this makes the single period where this didn’t happen worthy of more attention.
2002 to 2006 was not just a slight variation from the normal pattern but a complete reversal. For this period, not only was London bottom of the table for regional house price growth but at the top sat the North East, followed by Wales, Yorkshire and the Humber, and the North West.
Average prices grew by only a third in London between January 2002 and 2006, but more than doubled in the North East.
This followed 2001 to 2004, which is the only period since 1998 where the north of England as a whole grew faster than London.
2002 to 2006 was not just a slight variation from the normal pattern but a complete reversal. For this period, not only was London bottom of the table for regional house price growth but at the top sat the North East, followed by Wales, Yorkshire and the Humber, and the North West.
Average prices grew by only a third in London between January 2002 and 2006, but more than doubled in the North East.
This followed 2001 to 2004, which is the only period since 1998 where the north of England as a whole grew faster than London.
Policy interventions during this time included the £15 billion spent by the Regional Development Agencies, welfare-to-work and the New Deals, which would have had a greater impact in increasing labour supply in areas of higher worklessness, and regeneration expenditure focused particular on deprived areas and cities outside London.
There are a number of studies that attempt to assess the effectiveness of these interventions (for example, see: http://webarchive.nationalarchives.gov.uk/20090609003228/http://www.berr.gov.uk/files/file50735.pdf), however what is clear is that the 2002 to 2006 period is very much an exception.
The latest data from the Land Registry show that house prices in the North of England are still 15 to 20 per cent below their pre-recession peak whilst in London they are 50 per cent higher. Normal service is resumed.
There are a number of studies that attempt to assess the effectiveness of these interventions (for example, see: http://webarchive.nationalarchives.gov.uk/20090609003228/http://www.berr.gov.uk/files/file50735.pdf), however what is clear is that the 2002 to 2006 period is very much an exception.
The latest data from the Land Registry show that house prices in the North of England are still 15 to 20 per cent below their pre-recession peak whilst in London they are 50 per cent higher. Normal service is resumed.
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