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House prices double in ten years

House prices double in ten years

Category: Mortgages

Updated: 27/01/2010
First Published: 27/01/2010

MONEYFACTS ARCHIVE
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House prices more than doubled during the 2000s, despite the crash that dominated the housing market towards the end of the decade.

The average price of a property in the UK increased by 105 per cent in the ten years, from £81,596 in quarter four of 1999 to £167,020 in the fourth quarter of 2009.

It represents the largest real terms growth (inflation adjusted) in any decade over the last 50 years, despite property values falling by a fifth during the 2007 to 2009 housing market crash, the Halifax House Price Index

Before the troubles started, homeowners could have expected their property to have risen by 145 per cent in value since the beginning of 2000.

The final two quarters of the decade produced a boost for the market as prices grew by six per cent during the period, leaving them at a similar level to those seen in the third quarter of 2005.

"The noughties was a significant decade for house prices. Overall, prices increased considerably despite the marked decline towards the end of the decade," said Martin Ellis, housing economist at the Halifax.

"This contrasted sharply with the 1990s when prices rose only modestly in monetary terms and actually fell once retail price inflation is taken into account."

Homeowners in Redruth, Cornwall will be most likely to raise a glass to the figures, which show property in the town increased in price by 207 per cent on average, from just over £59,000 to over £182,000.

In regional terms, the North and Yorkshire & Humber saw the greatest rises in average values, at 120 and 130 per cent respectively. The South East and London were the locations with the slimmest gains, albeit at 85 and 80 per cent.

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