House Values: A Decade-Long Appreciation Rates Examined, Showing Significant Variation Depending on Location
Fresh Take:
It seems the old saying about house prices doubling every decade might be off the mark, as per Zoopla's recent analysis. Over the past 20 years, house prices have risen by an average of 74% across the UK, climbing from £154,300 to £268,200.
Inflation has been slightly higher, with consumer prices rising by 76% and retail prices by 107.5%, according to our inflation calculator. Despite this, the average home continues to cost roughly 6.4 times the typical annual salary.
However, affordability varies significantly across regions. The North-South divide remains apparent, but it's closed somewhat in recent years.
Regional Differences in House Price Growth
London tops the list with an average home price increase of 119% since 2005, from £244,200 to £534,400. The South East and Eastern England have also seen significant growth, with houses registering gains above the national average over the past 20 years.
On the flip side, the North East has experienced the lowest growth of any region, with average house prices increasing by just 39% over 20 years. However, house price to earnings ratios have improved significantly in the North East compared to the rest of the UK.
Local Differences within Regions
Even within regions, there are dramatic variations in house price growth. For example, within the South East, Elmbridge in Surrey has seen the highest increase in house prices over the past two decades, with a 110% jump.
On the other hand, Southampton in Hampshire and Great Yarmouth in Eastern England are more affordable, with lower average price increases in the region over the past 20 years.
So while the nationwide picture may suggest stagnation, it's essential to consider the variables at play in different regions and localities.
Sources: Based on Zoopla's analysis, our inflation calculator, and additional research.
- In the London real-estate market, mortgages have significantly increased over the past 20 years, with an average property price soaring by 119%, from £244,200 to £534,400, compared to the national average of 74%.
- When it comes to investing in housing-market properties, the North East region has shown the lowest growth, with mortgages only increasing by 39% on average, despite a marked improvement in the house price to earnings ratio compared to other regions.
- Within the South East region, there are noticeable differences in property growth, with Elmbridge in Surrey experiencing a remarkable 110% rise in average house prices, while areas like Southampton in Hampshire and Great Yarmouth in Eastern England have sees lower average price increases, offering more affordable options for mortgage financing.
