HOUSE PRICES RISE BY 187% SINCE 1990s RECOVERY
28 October 2006
Source: HBOS
New Halifax research shows that house prices have risen by an average of 187% across the UK since the housing market recovered in February 1996*. The average UK house price has risen from £62,453 in Q1 1996 to £179,425 in Q3 2006 – an average increase of 10.6% per annum.
Over the same period, stock prices rose by 61% or 4.6% p.a. Nominal earnings increased by 54% or 4.2% p.a. Retail prices rose 31% or 2.6% p.a.
House prices in London have more than tripled
Regionally, London delivered the largest increase in house prices since the 1996 recovery - a rise of 240% (12.4% p.a.). However, the capital had one of the largest price falls in the downturn with prices down 23% over Q2 1989 to Q1 1996.
The smallest increase since the 1996 recovery has been in Scotland, up 110% (7.3% p.a.), although this rise should be viewed within the context of virtually no fall in house prices north of the border during the early 1990s.** In 1996 the average house price in each of the UK's 12 regions was less than £80,000. In Q3 2006 the average house price was above £100,000 in all regions and higher than £150,000 in 8 UK regions. (See Table 1)
Cornwall has been the best performing county
The best performing county since the recovery in February 1996 has been Cornwall with a 274% (13.3% p.a.) rise in its average house price, followed by Carmarthenshire in Wales 264% (13.0% p.a.). All of the ten best performing counties saw price increases of more than 240%. Six of the top ten are from Wales. While Cornwall saw a larger than average price drop of 22% in the early 90s downturn, Welsh counties saw flat to rising prices over the period. (See Table 2)
Surrey is the most expensive county now and in 1996
The most expensive county is Surrey with a current average house price of £314,037. Surrey also had the highest house prices in February 1996 (£96,983). In 1996, only 8 counties had an average house price above £75,000; 35 had an average house price beneath £50,000. Now all counties have an average price above £100,000; 5 have an average price above £250,000. (See Table 3)
*Over Q2 1989 to Q1 1996 house prices across the UK fell by 11% but rose by 0.3% over the year to Q1 1996.
** Prices in Scotland increased by 25% between Q2 1989 and Q1 1996.
Newry has been the best performing town in UK with a 371% rise
Newry in Northern Ireland has experienced a 371% (15.8% p.a.) increase in its average house price from £38,326 to £180,546 since the February 1996 recovery. Walton on Thames in Surrey was the next best performer with a 368% (15.7% p.a.) increase to £407,235. Of the five best performing towns, two are in Northern Ireland and two are in Surrey. House prices in Newry rose 25% during the early 90s housing market downturn, while prices in Walton on Thames fell 26%. (See Table 4)
• Northern Ireland's average house price (£167,391) is now ranked 6th out of 12 UK regions, compared with 11th out of 12 UK regions in 1996 (£50,601). Scotland's house price ranking has slipped from 6th out of 12 in 1996 (£58,334) to 12th out of 12 in 2006 (£122,511).
House Price Performance by County (Tables 2 & 3)
• Half of all counties in the UK (50 out of 102) have seen a tripling in their average house price since 1996. All counties have seen at least a doubling in their average house price.
• Nine counties have seen at least a £150,000 increase in their average house price since 1996. All these counties are in the south of England. The largest increase has been in Surrey, up £217,054.
• The average house price in the highest priced county, Surrey (£314,037) is almost treble (194% higher) that in the least expensive county, Blaneau Gwent (£106,713).
• The Isle of Anglesey has seen the sharpest rise in its county house price ranking, up from 91st in 1996 to 43rd in 2006 as its average house price has increased from £44,743 to £161,346.
House Price Performance by Town (Tables 4 & 5)
• Ten towns have seen a quadru
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