The North/South divide in England has been a long-standing issue, and one that has been exacerbated by the recent increase in mortgage rates in South England. According to a recent analysis conducted by Zoopla, the average mortgage rate in South England is now 1.5% higher than in the North, leading to a widening of the economic gap between the two regions.
The analysis found that the average mortgage rate in South England is now 4.2%, compared to 2.7% in the North. This is a significant difference, and one that could have a major impact on the economic prospects of those living in the South. The higher mortgage rates mean that those living in the South will have to pay more for their homes, making it more difficult for them to purchase a property. This could lead to an increase in homelessness and poverty in the region, as people are unable to afford the cost of housing.
The analysis also found that the gap between mortgage rates in the North and South is widening. This is due to a number of factors, including the fact that house prices in the South are higher than in the North, meaning that lenders are charging higher rates to cover their costs. Additionally, lenders are more likely to offer lower rates to those living in the North, as they are seen as less risky borrowers.
The widening of the North/South divide is a concerning issue, as it could lead to further economic inequality between the two regions. Those living in the South are likely to be worse off than those living in the North, as they will have to pay more for their homes and may struggle to keep up with their mortgage payments. This could have a knock-on effect on other areas of life, such as education and employment opportunities, further exacerbating the divide.
It is clear that something needs to be done to address this issue. The government should consider introducing measures to reduce mortgage rates in the South, such as providing incentives to lenders or introducing caps on interest rates. Additionally, more affordable housing needs to be built in the region to help those struggling to purchase a property.
The widening of the North/South divide due to increasing mortgage rates in the South is a worrying trend, and one that needs to be addressed urgently. Without action, it is likely that the economic gap between the two regions will continue to grow, leading to further inequality and poverty in the South.