How Have House Prices Adapted?
If you own a property, the chances are that you will have seen it increase in value since you bought it. The extent of the increase will depend on a number of factors, such as where it’s located and when you bought it.
Here, we have a look at some of the trends and changes that have occurred in the housing market over the last two decades, as well as how these could affect property price. These figures, unless indicated otherwise, have been sourced from the Office for National Statistics (ONS) and relate to house prices in England and Wales only.
Overall, house prices have been increasing for most people in 18 out of the last 21 years. The biggest period of growth was during 2002 and 2003 when 96% of areas saw an increase in property prices. The biggest dip was, unsurprisingly, during the credit crisis nearly ten years ago. Just a third of areas saw house prices increase in 2008, dropping to 20% in 2009. The majority of people at this time saw house prices drop.
House prices in recent years
The last three years have been relatively stable, with 81% of areas in 2014 seeing a rise. It has fallen away slightly over the last couple of years but still stands at 77.5%.
This ties in with data for the whole of the UK which shows that the average house price has risen from £150,000 in 2005 to £220,000 this year. It rose to £190,000 in 2007 ahead of the crash, which saw the average price then drop to £154,000.
Activity in the market can give a clear indication to what prices might be doing, with figures showing the number of house sales that take place fluctuating from year to year.
2006 saw a boom, with 89% of areas seeing an increase in property sales. It dropped to 38% in 2007 and then spectacularly to 0.8% in 2008. Since then it has bounced from 45% up to 80% in 2013 and back again.
One of the biggest changes has been the widening of the gap between the top and bottom ends of the market. Looking at the median (middle of a range) price paid for a property within Westminster (which is the high end of the market), this was £2.7 million. Whereas, at the opposite end of the scale, the median price within County Durham was just over £23,000.
That gap isn’t likely to close anytime soon. Across England, the North East showed the smallest rate of increase in house prices in the last year at 0.6% – this contrasts with London which overall saw prices increase at a rate of 4.7%. However, London was outpaced by the East of England which saw house rates increase by 8.1%, as well as by the Midlands, Yorkshire and the Humber, the South East and the South West.
It’s fair to say that on the whole, prices have grown in a steadily upwards direction with a few bumps along the way. Even if you bought a property just before the crash in 2008, it should have more than recovered by now.
Steady activity in the housing market means that now is a good time to put your home on the market, all you need is a little help from the experts.
Gordons Property Lawyers are experts in the industry and can help guide you through the buying process at your own pace. Thanks to their professional conveyancing team, Gordons Property Lawyers are highly experienced and can help you make those important decisions whilst reassuring you every step of the way. Speak to a professional today by calling 01628 308 380 or by visiting https://www.gplawyers.co.uk/.