Influx of Londoners in Bristol as house prices in the capital rocket
09-27-2015
By Katie Pavid
The West Country is looking increasingly attractive as the costs of accommodation is reaching breaking point.
Buyers can get two houses in Bristol for the price of one in London, latest statistics show. There is an "exodus" of people moving from the capital to regional cities because of the huge gap in living costs.
And Bristol is a popular second choice, according to property analysts Hometrack.
The gap between house prices in London and other major regional cities is at its widest for 20 years.
The average in the capital is £437,000, but in Bristol the average is £231,300.
It means that for some people, the West Country is looking increasingly attractive as the costs of accommodation is reaching breaking point.
Analyst Richard Donnell said: "London's price to earnings ratio is at an all-time high, while there remains value in most other regional cities.
"The pricing differential to London could well help city regions attract new investment as the cost of housing starts to influence decision making for both households and businesses."
He blamed a "changing mix of buyers" and a failure to build new housing stock for the rocketing prices.
He said: "City level house prices continue to increase as demand for housing grows in the face of constrained supply.
"A changing mix of buyers is compounding the scarcity of housing for sale with rising numbers of first time buyers and investors buying property while having nothing to sell.
"Only a recovery in the number of moves amongst existing home owners or an increase in new supply will ease the current housing scarcity which seems unlikely in the near term."
It may be cheaper than London, but living in Bristol is still pricey for many people.
Prices in the city are now 16 per cent above their 2007 peak.
Earlier this year, Bristol fared badly in a happiness survey because of its high cost of living.
The Government's Life Satisfaction Index and data reflecting the average income and house prices was used to calculate the happiest parts of Britain.
Bristol did not fare well, and neither did London, Bath, Birmingham or Exeter.
But rural northern climes including Carlisle, Penrith and the Scottish Highlands are apparently full of happy people living in cheap homes.
Allerdale, in north Cumbria, came out best, followed by Lancashire's Ribble Valley and then Copeland, also in Cumbria.
The National Association of Estate Agents is the latest organisation to report a lack of homes going on the market.
It said the number of properties listed by estate agents across the country fell by a third in August, reaching an 11-year low.
Estate agents had an average of 38 homes on their books during the month, down from 55 in July.