JLL: House prices diving further in south than north

The decline in house prices at the end of this year and moving into 2009 will prove to be less steep in the north than the south, according to Jones Lang LaSalle's latest Residential Market Forecasts.

JLL said: "Over the past year house prices in the south have fallen slightly faster than in the midlands and north with the annual rate differential in the year to Q3 2008 11.0% compared to 9.3%."

The third quarter has seen the gap widen, JLL said, with the south down 5.8% compared to 3.8% in midlands and northern areas.

The annual fall by the end of 2008 is expected to be 16-18% in southern areas and 14-16% for the north.

The report added: "Moving into 2009, we expect house price falls in the south to remain larger than midland and northern areas. This trend is not too surprising given the epicentre of the UK's financial problems, the location of the majority of job losses and the experiences of previous economic downturns. We are forecasting annual house price falls in the south to average 14-16% but be closer to 12-14% in the midlands and the north."

JLL said 2010 will be the UK's recovery year, with a slight decline of 1-2% in prices nationally.