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TUESDAY 25TH OCTOBER 2005
 GAP NARROWS FOR UK HOUSE PRICES

The gap between prices in the north and south has narrowed to its lowest level in eight years according to the Halifax quarterly house price index report just released.

The average price in the south stood at 1.58 times the average in the north in 2005 Quarter 3 compared with a recent peak of 2.19 times in 2002 Quarter 2. The north/south divide, however, remains wider than it was ten years' ago when the average price in the south was only 1.38 times the average in the north.

The differential between the average price in the south and its equivalent in the north has narrowed by £8,000 over the past year with prices in the south £79,000 higher than in the north in 2005 Quarter 3. This is £20,000 lower than in early 2003 when the north/south differential stood at a record £99,000 (2003 Quarter 1).

The annual rate of house price inflation has slowed significantly in all the regions of Britain over the past 12 months and is now less than 10% throughout the mainland. The last time this occurred was in the first quarter of 1999. During the same period overall house prices are up 125%.

Coatbridge in Strathclyde is Great Britain's top property hotspot with a 36% rise in prices over the past year. Average prices in Coatbridge are up from £81,171 in 2004 Quarter 3 to £110,604 in 2005 Quarter 3.

Top ten towns

Scottish and Welsh towns dominate the top 10 with seven and two towns respectively in the list. The other top 10 town is Wednesbury in the West Midlands. Port Talbot (35%), Inverurie (32%), Lochgelly (31%) and Irvine (31%), along with Coatbridge, make up the top five. Three of the Scottish towns in the top ten are in Strathclyde, while three are in Fife.


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