UK house prices have risen by 91% over the past ten years, according to new research by Halifax.
The current housing market cycle saw the average house price in the UK increase by 132% between the last quarter of 2000 and the recent market peak of £199,766 in the third quarter of 2007, the research shows.
This was followed by a 21% drop to £157,767 in the second quarter of 2009. Then as the market has stabilised prices subsequently increased by 4% to £164,310 by the end of 2010, a level similar to the end of 2005.
Based on Halifax’s own data, the national average price rose by over £78,000, some 91%, from £86,095 in late 2000 to £164,310 at the end of 2010.
There has been a north and south divide, the research also shows. That gap has narrowed over the years but is now widening again. House price growth in the North has outperformed the South over the past decade, rising by an average of 102% compared with 75% in the South. As a result, the average house price in the regions across 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. However, there are signs that this regional pattern is reversing with the north south divide beginning to widen again. Between 2005 and 2010, the South East experienced the biggest price increases on the UK mainland, down 4%, while the North recorded the largest fall of 10%.
‘The turn of this century marked the start of a period of strong house price growth across the UK. The traditional home of price gains, the South, was left behind by strong growth in the North where house prices more than doubled over the period. However, recently, there has been a slight reversal of this trend with the housing market in the south of England outperforming the rest of the country over the past few years,’ said Suren Thiru, Halifax’s housing economist.
The six regions with the highest house price growth since 2000 are all outside the south of England. The North recorded the biggest rise, 130%, followed by Yorkshire and the Humber at 125% and Wales at 108%. Greater London and the South East saw the smallest price gains over the decade at 63% and 75% respectively.
Penzance has recorded the biggest increase in house prices among UK towns since 2000. The average house price in the Cornish town had increased by 193%, from £70,171 in late 2000 to £205,532 by the end of 2010.
Some 167 (50%) of the UK towns surveyed recorded at least a doubling in house prices over the past 10 years. Eight of the twenty towns that delivered the largest gains are in Scotland.
Penicuik in Midlothian in Scotland was up 179% and Carnforth in Lancashire up 178%, were the best performers in the north.
Only four out of the 20 towns with the largest prices gains were in the south. All four of these towns are in the South West.