House prices soar 91% in 10 years despite credit crisisMake Text Bigger
Despite the credit crisis and recession, house prices have almost doubled in the past 10 years, according to mortgage lender the Halifax. That’s an annual compound growth rate of over 7%.
Average house prices nationwide increased by 91% from £86,095 in late 2000 to £164,310 at the end of 2010.
The current housing market cycle saw the average house price in the UK increase by 132% between 2000Q4 and the recent market peak of £199,766 in 2007Q3.
This was followed by a 21% drop to £157,767 in 2009 quarter 2.
As the market has stabilised prices have subsequently increased by 4% to £164,310 at the end of 2010, a level similar to the end of 2005.
House prices in the north outperformed those in the south over the period rising by an average of 102% compared with 75% in the south.
The average house price in the south (£206,091) is now 56% higher than in the north (£132,163).
Ten years ago prices in the south were, on average 80% higher than in the north.
Signs are that this regional pattern is reversing again. Between 2005 and 2010, the south east experienced the biggest price increases on the UK mainland (4%) while the north recorded the largest fall (-10%).
Suren Thiru, Halifax housing economist, said: “The turn of this century marked the start of a period of strong house price growth across the UK. The south was left behind by strong growth in the north where house prices more than doubled over the period.”
Latest house price data from the Land Registry for December 2010 shows an annual price increase of 1.5% taking the average property value in England and Wales to £163,814.
The monthly change from November to December was a decrease of 0.2%.
Latest figures show that during October, the number of completed house sales in England and Wales dropped by 15% to 55,964 from 65,736 in October 2009. The number of properties sold in England and Wales for more than £1 million increased by 1% between October 2009 and October 2010, from 572 to 579.
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