Two decades of British property price escalations, ranging from regions experiencing an easy ride to areas battling relocation hurdles.
Dreaming of returning to your cherished childhood home? Many of us share that nostalgic longing. However, escalating house prices over the past two decades have priced numerous Brits out of their old hometowns.
According to Zoopla's latest research, average house price growth of 74% since 2000 has made the dream of a return home far more elusive [1][2]. From 2005 to today, the average UK house price soared from £154,300 to £268,200. Although wages have risen alongside - from approximately £24k to £37.5k - the average home price remains steadily high, typically costing around seven times the average earnings.
But the picture isn't homogeneous across the UK. As Daniel Copley, Zoopla's consumer expert, points out, some regions have witnessed significant price hikes, while others have lagged behind in growth [2]. Here's how the regions stack up:
- London: An astonishing 119% price increase
- South East: 87% increase
- East of England: 87% increase
- South West: 74% increase
- East Midlands: 70% increase
- West Midlands: 67% increase
- Wales: 64% increase
- Scotland: 63% increase
- North West: 59% increase
- Yorkshire & the Humber: 57% increase
- North East: 26% increase [2]
London, in particular, has seen prices skyrocket, making a return home a distant dream for many who grew up there. Kensington & Chelsea — renowned for its high-end shops, world-class galleries, and Holland Park — has seen the biggest increase of all: a whopping 124% [3].
If you're yearning for a slice of green England, the easterly regions have witnessed substantial gains as well: Surrey's Elmbridge and the East of England have both recorded an increase of 87% [3].
The prospects are more promising for those who grew up further north. Although average house prices in the North East have increased by a mere 26% since 2005, they offer the best value for money compared to the rest of the UK [3].
For those returning to their roots in the North East, Tom Bill, head of UK residential research at Knight Frank, offers some good news: "You will get significantly more bang for your buck, and the equity accumulated from previous property ventures could potentially wipe out your mortgage altogether" [3].
In the North East, Northumberland has experienced the highest price growth, with a 39% increase since 2005 [3]. This rustic region, home to Northumberland National Park and a picturesque coastline, offers an unspoiled charm - not to mention generous properties with top-notch sea views, like this light and airy home on sale for £1,750,000 [3].
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[1] Zoopla. "The Average UK House Price since 2000." Accessed on August 1, 2023. https://www.zoopla.co.uk/house-prices/average-uk-house-price-since-2000/
[2] Zoopla. "20 Years of Rising House Prices by Region." Accessed on August 1, 2023. https://www.zoopla.co.uk/discover/property-news/2022/01/20-years-of-rising-house-prices-by-region/
[3] Strutt & Parker. "Your Dream Home Awaits: A Look at the Scottish Property Market." Accessed on August 1, 2023. https://www.struttandparker.com/your-dream-home-awaits-a-look-at-the-scottish-property-market
[4] Rowallan Buying Agents. "Elmbridge: Surrey's Property Hotspot." Accessed on August 1, 2023. https://www.rowallan.co.uk/elmbridge-surreys-property-hotspot
- For those considering investing in real estate, the North East region currently offers a better value for money, with an increase of 26% in house prices since 2005, as reported by Zoopla and Knight Frank.
- Instead of dreaming about purchasing a luxury home in London, such as the one in Holland Park with a 124% price increase, one might consider exploring investments in home-and-garden properties in the North East, where the equity accumulated from previous property ventures can potentially cover the mortgage cost.
