Soaring house prices lock most people out of childhood hometowns

A 74% surge in UK house prices over the past two decades, from £113,900 to £268,200, has made returning to childhood hometowns a distant dream for many Brits, research reveals.

According to Zoopla, despite 52% of people expressing a desire to relocate to their roots, affordability barriers, particularly in southern regions, are proving insurmountable.

In the South East and eastern England, property values have rocketed by 87% since 2005.

Elmbridge in Surrey stands out, with average prices climbing 110% from £338,800 to £712,700, driven by its proximity to London and scenic countryside appeal.

20 years of price growth

Zoopla’s consumer expert, Daniel Copley, said: “Our latest analysis certainly brings to light the profound impact that two decades of house price growth has had on the dream of ‘returning home’.

“UK house prices have soared by 74% since 2005, making that nostalgic return financially unattainable for many, especially in hotspots in the South East and Eastern England.

“However, the picture is far from uniform across the UK.”

He added: “Our data shows that while some areas have seen dramatic increases, house prices have risen slowly, in line with incomes in northern regions.

“This means that for some, the dream of returning to their roots might be much more attainable than they think.”

Areas with rocketing prices

The Zoopla study also points to St Albans which has seen a 108% rise, with homes now averaging £622,100, attracting commuters and history buffs alike.

However, more affordable pockets exist, such as Southampton, where prices rose by 63% to £225,500, and Great Yarmouth, up 77% to £187,700.

London has experienced the steepest increase, with a 119% jump to £534,400, and Kensington and Chelsea leading at a 124% rise to £1,130,400.

Meanwhile, northern regions offer a glimmer of hope for nostalgic movers.

North East saw lower rises

The North East has seen the smallest price increase at 39%, with homes averaging £146,400.

Sunderland recorded the lowest regional growth at 22%, with prices at £124,000.

In the North West, Blackpool’s prices grew by just 26% to £124,300, while Hull in Yorkshire saw a 49% rise to £115,100.

Affordability has improved in northern areas, with house price-to-earnings ratios dropping significantly in the North East from 5.7 to 4.

In the North West and Yorkshire it fell from 6 to 5.1 and 5.7 to 5, respectively.

This contrasts with the South East, where ratios rose from 7.8 to 8.6, and Eastern England, from 7.1 to 7.7, underscoring the regional divide.

Property sector reaction

Toby Leek, the president of NAEA Propertymark, said: “Rural and picturesque areas across the country are popular destinations that many people choose to move to, especially those that are looking for a quiet escape, such as certain coastal locations. However, this sometimes comes with a bigger price tag.

“As places increase in popularity, this raises house prices to levels that mean many current or ex-locals who may wish to move back to their hometowns where they grew up could find it hard to afford to purchase a home.

“It also has the potential to be extremely challenging for people to migrate around the locality as well, due to higher prices.”

Tom Bill, the head of UK residential research at Knight Frank, said: “If you grew up in north east England, bought in London and are now returning to your roots, you’re in luck.

“You will get significantly more bang for your buck and the equity accumulated means your mortgage could be wiped out altogether.

“The gap between the capital and the rest of the country has narrowed in recent years as more affordable parts of the UK have seen stronger house price growth.”