16:43 PM, 6th December 2011, About 10 years ago
Property investors looking for homes with the best capital growth should look for homes built before the end of the First World War, according to new research.
High ceilings, decorative features, larger rooms and often larger plots have all contributed to the massive 461% price rise in homes built before 1919 – equivalent to just under a £17 a day rise for the past 25 years.
Buyers could snap up one of these homes for an average £33,619 in 1986, when records started.
The current average price is around £188,473.
During the same time, all properties increased by 357% or £449 per month, says the Halifax, who compiled the figures.
Housing stock from the First World War and earlier includes fashionable ‘upstairs downstairs’ homes with servants’ quarters to quaint terrace homes spanning the Georgian, Victorian and Edwardian eras.
Martin Ellis, housing economist for the lender, said: “The age of a property often determines its size, its style and location. Properties from the Victorian or Edwardian era tend to be in higher demand: there are fewer of them; they are often larger, situated in desirable locations, and have a popular style. It’s easy to see why pre-1919 homes witnessed such a dramatic increase over the past 25 years.”
Other popular period home winners are post 1960 homes – which have seen prices jump by 348% in 25 years to an average £169,168.
The least popular homes were built between the end of the Second World War and 1960. Prices still climbed, but by a lowly 248%.
“Modern properties, built since 1960, have their own pull, which is sometimes linked to convenience; whether it is location on a commuter belt or the fact little extra work is needed.” said Mr Ellis.
“Properties built between the end of the Second World War and 1960, on the other hand, include many smaller properties, which will contribute to the smaller rise in price over the last 25 years.”
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