House prices doubled during the 2000s
This is according to a survey carried out by the Halifax, reviewing house price performance over the past ten years sourced from the Halifax House Price Index.
As we begin a new decade, Halifax has looked at house price performance over the past 10 years. The noughties was a significant period for the UK housing market. Despite a fall of more than one-fifth between mid 2007 and mid 2009, house prices increased by more in real (i.e. inflation adjusted) terms than in any other decade over the last 50 years.
The research showed that house prices increased by 105% during the past decade, taking the UK average house price from £81,596 in 1999 quarter 4 to £167,020 in 2009 quarter 4.
The national average price increased by 145% between the start of the 2000s and the peak in 2007 quarter 3. This was followed by a 21% decline over the next seven quarters. Prices subsequently increased by 6% during the final two quarters of the decade. House prices ended the 2000s at a level similar to that in 2005 quarter 3.
Martin Ellis, housing economist at Halifax, commented: “The noughties was a significant decade for house prices. Overall, prices increased considerably despite the marked decline towards the end of the decade. 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.
“The majority of towns that experienced the strongest price growth began the decade with lower than average property prices, which provided the platform for bigger price gains. Seaside towns fared particularly well as the attraction of having a home on the coast helped to boost demand.”