This house is valued at £239,000.
The house in Palmers Green includes: downstairs cloakroom, lounge, dining room, study, master bedroom with en-suite bathroom, family bathroom and a landscape garden.
This house is valued at £379,950.
Now on balance, as much as the properties may be different and have different facilities, they are both 4 bedroom semi-detached houses but have different prices that are close to £141,000 apart.
The market price is vastly different and shows that the different parts of the country have different market prices even thought they are the same type of house.
This data can also be represented in a bar graph as shown below:
For my second example I have chosen to compare a 4 bedroom detached house in Scarborough against a 4 bedroom detached house in Winchmore Hill in the London Borough of Enfield.
The 4 bedroom detached house in Scarborough includes the following features: 4 bedrooms, lounge, dining room, dining kitchen, utility, en suite, double glazing, double garage, central heating, gas and a garden.
This house is valued at £249,500.
The 4 bedroom detached house in Winchmore Hill includes the following features: 4 bedrooms, downstairs cloakroom, 18’ lounge, 26’ dining room, fitted kitchen, morning room, 21’ conservatory, shower room with sauna, separate WC, garden and garage.
This house however is valued at £790,000.
Now on balance, the properties show a vast difference on the inside with different facilities but they are, on the basic, both 4 bedroom detached houses but have different prices that are close to £540,500 apart!
The market price is extremely different and show that the different parts of the country have different market prices even thought they are the same type of house on the outside but completely different on the inside.
This data can also be represented in a bar graph as shown below:
There are a number of reasons behind the different house prices in the different part of the country.
A few of the reasons could be due to work and work related issues such as:
- Promotion in a job but the job is in another part of the country and in this case it being either Scarborough or London.
This will increase the demand for a house in either part of the company and therefore increasing the price of the house.
- Loss of a job could mean that a new job offer could be in either part of the country I am investigating about.
Therefore once again increasing the demand for the houses in the area.
- If whilst working in a job and a pay rise is awarded, then there will be a higher disposable income resulting in either, the person paying off their mortgage or moving to another part of the country.
This will lead to either an increase or decrease in demand for houses because if there is a greater disposable income, then people may enjoy living where they are and not want to move or it could lead to them buying somewhere that is either more expensive or higher up the property ladder.
Also a reason for different house prices could be in their supply.
This could mean that if there are a lot of, more or less, identical houses or just more houses built, then the as the supply goes up, the house price may go down because of the amount of houses in one area.
Another reason may be that, if the interest rates go up, so will the price. On balance though, if the interest rates go down, then so will the price.
My evidence shows that in Scarborough, the house prices for properties such as a 4 bedroom semi-detached house and a 4 bedroom detached house are extremely cheaper than buying a 4 bedroom semi-detached house or a 4 bedroom detached house.
Demand for houses in London is generally higher because of the job offers and supply of jobs as well as better access to services such as hospitals and transport.
Moreover, production in London also seems to be greater than in Scarborough and therefore increases the demand for London and the properties situated in it. This shows that the economic theory is tested in London against Scarborough to a greater effect.
In summary of this report, I have included possible reasons behind the levelling in prices of housing in North London and I have compared the prices of certain property types against housing in another region of the country, which in this case is Scarborough.
Over the next few years I would predict that, if the housing prices were to either stay level or decrease, then the demand could rise because it will give people more affordable housing in North London. On balance, prices could increase and therefore making the consumer pay more money for housing which may decrease the demand for housing as the price increases.
A supply and demand graph to represent this evidence can be seen below:
