House prices almost double in ten years
Based on Halifax’s own data, the national average price rose by over £78,000 (91%) from £86,095 in late 2000 to £164,310 at the end of 2010.
The current housing market cycle saw the average house price in the UK increase by 132% between 2000Q4 and the market peak of £199,766 in 2007Q3. This was followed by a 21% drop to £157,767 in 2009 quarter 2. As the market has stabilised prices have subsequently increased by 4% to £164,310 at the end of 2010, a level similar to the end of 2005.
The North-South house price divide has narrowed over the past 10 years but shows signs of returning. House price growth in the North outperformed the South over the past decade, rising by an average of 102% compared with 75% in the South. As a result, the average house price in the regions across the South (£206,091) is now 56% higher than in the North (£132,163). Ten years ago prices in the South were, on average 80% higher than in the North.
However, there are signs that this regional pattern is reversing with the north south divide beginning to widen again. Between 2005 and 2010, the South East experienced the biggest price increases on the UK mainland (4%) while the North recorded the largest fall (-10%).
Suren Thiru, Halifax housing economist, commented: “The turn of this century marked the start of a period of strong house price growth across the UK.
“The traditional home of price gains, the South, was left behind by strong growth in the North where house prices more than doubled over the period. However, recently, there has been a slight reversal of this trend with housing market in the south of England outperforming the rest of the country over the past few years.”