House prices up by 187% in ten years, finds Halifax
New research from Halifax shows that house prices have risen by an average of 187 per cent across the UK since the housing market recovered in February 1996. The average UK house price has risen by 10.6 per cent a year from £62,453 in the second quarter of 1996 to £179,425 in the third quarter of 2006. Stock prices have risen much less, by 61 per cent or 4.6 per cent per year, as have nominal earnings, by 54 per cent or 4.2 per cent a year. Retail prices have risen by 31 per cent during the period. That equates to 2.6 per cent per year.
As expected the largest increase has been in London, where prices have risen by 240 per cent (12.4 per cent a year) during the period under review. That said, during the downturn from 1989 to 1996, house prices fell most in the capital, by 23 per cent. Scotland has seen the smallest increase, up 110 per cent (7.3 per year). However, prices remained virtually unchanged during the downturn elsewhere.
Average house prices have also increased, from less than £80,000 in 1996 to above £100,000 today. In eight regions, the average house price is now above £150,000. Cornwall has performed best among the counties since the recovery with a 274 per cent rise (13.3 per year) in the average house price there. Meanwhile, Surrey has held its position as the most expensive county, both in February 1996 (£96,983) and now (£314,037). The highest priced town in 2006 is Gerrards Cross in Buckinghamshire with an average house price of £712,828. In 1996 prices were highest in Kensington & Chelsea (£206,119), followed by Gerrards Cross (£205,968).