Why are houses so much cheaper up north?

[CliveThighs]

OK, I'm aware this is probably a silly question so please don't flame me too much.

But I live in the south east where a 3 bed terrace costs around £350k. Which is crazy high. But somehow my brain has accepted that this is what a house costs.

But I fell down a zoopla/rightmove rabbit hole earlier and realised that up North a 3 bed terrace is about 1/3 of the price.

So what makes the south so much more expensive. I know the theory is London jobs and higher wages in the SE but are wages really that much lower in the North? Surely teachers, nurses, doctors, lawyers get paid roughly the same where ever they are in the country? Minimum wage is the same all over the country, and the vast majority of those living in the SE don't earn these magically high London salaries?

@user1497207191

Lots of jobs have different salary levels according to location. Eg, qualified accountant jobs in my town are about half the going rate for similar jobs in our nearest city, and about a third of similar job salaries in London/SE. It's all supply and demand. Firms in the cities have to offer higher salaries as there is lower supply, whereas firms in run down towns offer lower salaries as people around them don't need as much to live on (and their clients/customers have lower disposable incomes so charges/prices are correspondingly lower).

As for nurses, teachers, etc., yes, their wages are broadly similar in all areas, hence why they tend to live in the "nicer" areas in my run down Northern town - they're the ones with the money, as their wages are higher than the local average wage.

That's really interesting. Dds teacher has just bought a flat, she had to move back into her parents house for a few years to save up a deposit.

This is why it's hard to recruit to public services in the south east. 40k for a senior paramedic is an okay salary in the south east, but its a really good salary in lots of other places. Hence staff are constantly leaving in the south east and moving to places where they will still be paid the same, but enjoy a much better standard of living

@MapleMay11 It was an example of what a silly generalisation it is. You can get cheap terraces in the South for cheap in say, Plymouth or Jaywick.

A cabbie in Liverpool once explained to me as "You can have Liverpool house prices, if you want Liverpool wages."

There are some areas in the north that are equally expensive. Usually the really nice places. You can also buy terrace houses for £80k but you wouldn't live in these area out of choice.

Housing density is less but so is the population!

BUT your unlikely to earn the cash in the north that you do in the south. Its all relative.

@TheCumbrian

I'm not sure people in the Lakes, lots of Manchester, York, Harrogate, parts of Lancaster, etc would agree with you.

In the Lakes in particular where many of the 'locals' are in service industry and public sector jobs the wages don't come anywhere near covering the cost of a standard 3 bed in the popular areas.

I think the Lakes is officially the most expensive national park in the U.K. to buy property.

Wages are significantly lower up here.
Commuting any kind of distance is harder due to antiquated public transport links.
There are fewer industries with a significant presence up here, and also fewer jobs.
In many areas, there are only one or two main employers - less competitions means they pay much lower wages than if they were competing for good staff.

However - Looking at a nice area of the SE and comparing against the most deprived bit of Tyneside isn't really a sensible comparison. In the 'nice' (i.e. more affluent) bits of the north, prices are still pretty high. £350k would buy you a 3 bed semi in my village. A bit bigger than you'd get for the money down south, but not much.

I simply can't fathom why anyone would choose to live in LDN...

@JustJustWhy

Two of the most highly qualified people I know have had to relocate from North to South to obtain work in their field.

This! If we choose the southern lifestyle we'd earn a lot more BUT this would be swallowed up in housing costs and cost of living. We believe our quality of life is far better in the north.

I'd rather live on the south coast where the weather is much better and live in a smaller house. Sunshine is important to me

Because it's horrible up here. Please don't think about cashing in on your expensive southern house and moving north; you'll hate it, it's really grim. We live on tripe, and juggling ferrets is our only form of entertainment.

@Youaremypenguin

BUT your unlikely to earn the cash in the north that you do in the south. Its all relative.

Some jobs in Lancaster/Carlisle are extremely well paid.

The company I work for is international (financial services) and we are all WFH or can go into the office if we want. Personally for my team I don't pay anymore for the same role depending on where the person lives. If they are good then I will always try and pay appropriately. It strange though as I have people on the team living as far north as Edinburgh and also people in Kent. I honestly don't care where they work as long as the hours are done and they complete their work.
I would like other companies to follow suit - its not all grim up north and my 4 bed detached cost £200k less than someone who works on my team. Just means I will pay of the mortgage quicker and have more each month.

@SaskiaRembrandt

Because it's horrible up here. Please don't think about cashing in on your expensive southern house and moving north; you'll hate it, it's really grim. We live on tripe, and juggling ferrets is our only form of entertainment.

You forgot to mention the obligatory whippets...

@Cochabamba

I'd rather live on the south coast where the weather is much better and live in a smaller house. Sunshine is important to me

You are aware we also have sunlight... it doesn't stop at the Midlands...

You forgot to mention the obligatory whippets...

Yeah, but given our terribly low wages who can afford a whippet nowadays?

I suppose London is the capital and it's usually more expensive the closer to a city you are? I live in North Yorkshire and it is utterly beautiful. Sandy beaches, stunning countryside, beautiful property, friendly people. I honestly think I live in the best part of the country.

I live in Manchester, it’s not unusual for a 3 bed terrace to cost £350000.

Some jobs everywhere are extremely well paid. But there are less of them available. Fewer to benefit. Lower average incomes etc

I'm currently renting the whippet! #povertyintWestmorland

I've been to LDN. I've family from LDN. I'd rather live in East Hull than LDN and that's not saying much.

350k will "only" get you a 3bed semi in somewhere like Gosforth or Jesmond.

It would get you a 3bed terraced house with no off street parking in Whitley Bay.

So not all the North

@SaskiaRembrandt 😂

I've a classmate from GCSEs in Whitley Bay. Plus there's a chance to be on Vera.

Ah the Jesmond Jetset!