UK House Prices Treble in 20 Years
Whether looking to invest in a semi-detached property in Central London or a bedsit in the Welsh valleys, you will need to have an understanding of what the property is worth now and could be worth in years to come. However, many investors are also concerned with past valuations, looking at previous trends to predict future ones.
Well, if you are a property investor delving into the past, you will be glad to know that property prices have trebled over the last 20 years; a trend that is expected to continue into 2020, 2030 and beyond.
This is according to figures revealed in a survey conducted by Halifax.
To report states that the average UK house price has risen from £91,199 in 1999 to £279,997 in 2019.
As expected, Greater London has been a hotspot for price hikes, with data revealing a price increase of nearly 239%. Prices have spiked from £157,453 to £533,437 there. This has resulted in a lack of affordability in the capital, with house-price-to-earnings ratio rocketing from 5.4 to a huge 10.8 in 2019.
East Anglia and the South West also experienced significant increases in average house prices; up to 270,206 and £188,766 respectively.
Russell Galley managing director at Halifax, said the following:
“The rise in house prices in London since the turn of the century is well documented, and a sharp decrease in affordability just shows how quickly the market has moved.
“Conversely, there are bargains to be had elsewhere such as in the North, Scotland and Northern Ireland where prices have been slightly more subdued and properties compared to earnings are comparatively affordable.”
What are your thoughts? Will the next 20 years be another two decades of price increases? We would love to hear your ideas and opinions.