Analysis reveals a troubling divide in the UK housing market, with key London neighbourhoods experiencing rapid declines while northern cities like Manchester are seeing prices soar — a clear sign of a destabilised economy fueled by inadequate policies and reckless spending.
A recent investigation, based on Land Registry data, highlights nearly 140 suburbs where house prices have plummeted by at least 10% since 2019. In Camden’s somber Somers Town, prices have nearly halved—from £1.3 million down to just over £675,000. Similar steep drops have hammered other central London areas, including parts of Southwark and St John’s Wood North, with reductions between 39% and 45%. This chaos isn’t accidental but a direct consequence of misguided policies from the current government, which has imposed higher taxes and restrictions that have scared off international buyers and squeezed out homeowners.
The government’s elitist fiscal measures — such as the dismantling of the non-domicile tax scheme and a stubborn 5% surcharge on second properties — coupled with a relentless interest rate hike from 0.75% in 2019 to 4% today, have hit London’s wealthy enforcers of the property market hard. Experts warn that London’s notoriously high price-to-income ratios make it an easy target for such policies, causing demand to collapse and forcing sellers to slash prices. Instead of supporting growth and stability, these policies have led to a collapse in what was once a thriving, high-value market.
Meanwhile, regions outside the capital are bucking this trend — especially Manchester, where affordability and vibrant regeneration projects have sparked impressive growth. In Old Trafford, house prices have surged an extraordinary 162% since 2019, rising from around £114,500 to £300,000. This isn’t a coincidence, but a testament to the government’s failure to address regional disparities and an over-reliance on London’s overpriced property bubble. Manchester’s economic prospects—boosted by investments in new stadiums, infrastructure, and urban renewal—are attracting more buyers and investment, driving prices upward and offering a glimpse of hope in a battered market.
Across Greater Manchester, the story is similar. Salford’s property values have more than doubled in a decade, and Trafford’s prices are climbing steadily amid ongoing regeneration and improved transport links. Property prices in Manchester city centre are now 8% higher than last year, outpacing the UK average — a clear signal that economic vitality in the North remains resilient, even as the South flounders under a misguided government’s policies.
Regional disparities are widening, and the overall UK housing market — already fragile — shows increasing signs of volatility. Rightmove reports that house price inflation has turned negative for the first time in nearly two years, with a surge in listings reflecting a market in disarray. While some parts of the South West see modest declines, the North West and the North in general are stabilising and even growing, exposing the failings of a government more interested in taxing success than supporting sustainable growth.
In London, the streets of Kensington and Chelsea have seen a 2.5% drop, and Westminster houses have slumped by 5.6%, yet other parts of the capital, like Bromley, continue to see gains. This patchwork shows a city divided — a symbol of a nation suffering under policies that punish success and discourage investment.
This analysis underscores a stark reality: the UK’s housing market yearns for strong leadership and sensible policies. Instead, the government’s heavy-handed tactics have deepened regional divides and destabilised London’s once-stable property sector. Without a serious plan to restore soundness and promote regional growth, we risk sinking further into economic stagnation, leaving hardworking families behind while wealth concentrates into fewer hands. It's clear that bold, reform-minded leadership is desperately needed — not more failed policies that benefit the few at the expense of the many.
Source: Noah Wire Services