Prices fall but number of property millionaires rises

HOUSE prices in Bradford fell further than in nearly every other town or city in the UK last year, research by the building society Nationwide has revealed.

The study showed house prices in the city fell by nine per cent in 2012, giving an average house price of £145,478, with Yorkshire and Humberside also revealed as the weakest-performing English region, as prices edged down by 2.5 per cent over the year.

Only Manchester suffered as badly as Bradford, where prices also fell by nine per cent.

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Bradford Council leader David Green said the slump reflected problems in the local economy which the authority was determined to address.

“High unemployment and comparatively low average wages are something that Bradford has faced for some time which has resulted in lower house prices,” he said.

“We are committed to tackling this as a council through the various long and medium term strategies that we have put in place, such as the City Centre Growth Zone and Get Bradford Working.”

The research, published yesterday, also showed evidence of a growing North-South divide in England, with the price of a typical home in the South now standing at a new high of around £95,000 more than in the North - a two per cent increase compared with the end of 2011.

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Sharp contrasts in the performance of the housing market were highlighted across the UK, with prices increasing by six per cent annually in Cambridge and three per cent in Coventry, compared to the plummeting values in Northern cities.

Prices in London rose by 0.7 per cent to remain the highest in the country, with an average of £300,361.

Across the UK, house prices fell by 0.1 per cent month-on-month in December and are likely to remain flat or edge lower still during 2013, Nationwide predicts.

The monthly decline meant that at £162,262 on average, prices dropped by one per cent over 2012, reversing a one per cent increase recorded in 2011.

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Overall, prices in England declined by 0.4 per cent over 2012 to reach £186,390, making England the most resilient of the home nations.

However, recent lending figures have shown a pick-up in mortgage approvals to home buyers and the Council of Mortgage Lenders has said it expects the housing market to “feel more stable and positive” in 2013.

A separate report from the Bank of England also said yesterday that mortgage availability has surged and is expected to continue rising this year.

There was also evidence that property in the region can pay, with the number of property millionaires in Yorkshire and the Humber rising by 271 over the year.

Property search website Zoopla said the region now has 1,541 property millionaires.