UK housing market to see regional variation, says estate agent

A major estate agency has predicted that over the next few years the country will see large regional variations in house prices.

Liam Bailey, a spokesperson for Knight Frank, said Scotland will continue to do well - noting that prices are still "marginally" increasing there - as it does not have a cyclical market like the rest of Britain.

However, he added: "The strongest markets over the next few years will be London and the south-east due to the weight of demand for accommodation in these locations."

This will contrast with the midlands and north, where people have had to stretch themselves the most to get on the housing ladder.

If high demand ensures elevated levels of house price inflation, those living in London and the south-east may seek to use the self build method to obtain a home for a more affordable cost.

House prices across the UK fell by 1.7 per cent in July, according to figures from Halifax.