30 years of London and UK-wide house prices examined
03-29-2014
30 Years of house prices in London and the rest of the UK (Picture: Supplied)
For anyone who’s bought or sold a property in the last few years, it will come as no great surprise to learn that house prices in the UK are close to as high in 2014 as they’ve ever been, and have been on a gradual incline since the early 80s.
Over the last 30 years we’ve seen the average UK house price rise from under £50,000 to over £250,000, with a point just a few years ago when the average property went for over £300,000 (before the much-publicised collapse of the housing market in 2007).
This incredible rise in property prices is unlikely to stop either, with average prices increasing 8.4% last year (according to the Nationwide building society), and an expected further increase of 8% in 2014 according to some forecasts. Recent figures also show that last month alone, house prices experienced their biggest monthly rise for more than four years.
In our brand new infographic, we take a look at UK house prices between 1983 and 2013, as well as how these prices compare to the inflation of food prices over the years. We also examine the UK’s most expensive area: Knightsbridge and Belgravia in London.
While conducting our research for the infographic, we were particularly interested by how much everyday food items would cost if they had risen in-line with house prices – most notably over £50 for a standard-sized chicken, and over £10 for four pints of milk!
The price of living: Food prices vs house prices in the UK (Picture: Supplied)
We also had a look at London’s (and the UK’s) most expensive area, the exclusive Knightsbridge and Belgravia. Our research found the five-year average price for a property (2008-2012) in this area to be an incredible £2,663,256, making it a haven for national and international billionaires and millionaires looking for an exclusive London home.
Prices in the capital show no signs of dropping either, with an expected 22.7% rise in the prices of prime central London prices between 2014 and 2018.
This continued increase in property prices – both in the capital and nationwide – has led to ministers predicting the arrival of 40-year mortgages, as rising prices prompt more home-buyers to abandon the traditional 25-year loan and adopt longer repayment terms.
Whilst a ‘two generation’ mortgage may have been unthinkable even a few years ago, a cultural shift towards the comfort of extended loans coupled with ever increasing property prices could see the 40-year mortgage become the norm in the United Kingdom.
If you are looking to buy, sell, let or rent a property or simply need advice speak to your local Winkworth Team, they are experts in every area of the market and will be happy to help.
Visit www.Winkworth.co.uk for more details.