Compare this to the North East’s £97,974, and with the price across England and Wales sitting at £179,492 (according to figures from the Land Registry) and, as has been much-discussed, there is a staggering disparity across the nation.
The gap between the highest and lowest regional averages is more than £350,000 – and with such a geographical divide in house prices, it can create huge issues for the movement of workers.
Families looking to move to London from other areas of the country will find they have little or no chance of buying an equivalent-sized property in the capital, despite a likely increase in wages.
Prices across England and Wales have risen 1.3% (compared to December) while the national rate of increase slowed to 6.7% annually, showing a slight rise over the year.
It does seem, however, that we are still in love with the traditional semi-detached, and this proves to be the most popular type of property with an increase of 7.4%.
This geographical divide in house prices now dictates where workers and families live, with many having no chance of buying homes in the nation’s capital.
Arguably, the bigger issue is the generational divide in home ownership with Vince Cable recently describing the situation as "unhealthy". Young adults in England are less likely to own their property than the same age group from just a decade ago, with many having difficulty in being able to raise the required deposit.
Statistics show that in 2003/04, 59% of homeowners were 25-34 years old compared to 36% in 2013/14. Instead, young adults have been renting homes from private landlords while desperately trying to save up for a deposit and watching house prices rise sharply – in some cases faster than the rise in the cost of living. It’s making saving for a deposit increasingly difficult in an economic climate that is already punishing for savers.
If the Conservatives are in power after the next election the Chancellor states that the first £1,000 of savings interest will be tax-free. That would mean that 95% of savers would pay no tax. Help to buy ISA accounts will be available this autumn through banks and building societies, where the government will top up savings for first time buyers by £50 for every £200 saved. This will help those saving for a deposit that have been renting homes from private landlords whilst house prices have risen sharply.
Clearly, the Chancellor now believes that house prices are now so high that we need to give tax breaks to these saving for a deposit. One benefit is that some talented individuals may be forced to work closer to home rather than move to the capital, potentially helping the redistribution wealth.
A generational gap has opened up in a spectacular and worrying way, with council housing possibly the only realistic solution.
The Labour party has said they will build 200,000 new homes a year allowing councils the power to build with planning permission.
On the other hand the Conservatives want 100,000 starter homes for first time buyers at a reduced rate - yet have announced the resurrection of Right to Buy, potentially selling off much-needed social housing.
One thing I am sure of is if we allow it to continue, then in 20 to 30 years we will be in a position that older people cannot cover living costs and rent and we will have a massive housing benefit bubble waiting to burst.
