UK House Prices Now 30% Higher Than In 2007

As the UK regains its footing following the global pandemic, it seems that the nation’s property market is enjoying something of a windfall, with new analysis showing that the average house prices around the country are reaching new highs – some 30 per cent higher than the 2007 market peak.

Zoopla’s monthly House Price Index shows that the average price for a property in the UK has now peaked at £230,700, with house price growth up 5.4 per cent year on year for the month of June, which is more than double the annual price growth seen a year ago.

Regionally, growth is at its highest in the northwest, up 7.3 per cent, as well as Yorkshire and the Humber, up 6.8 per cent. For London, annual house price growth sits at 2.3 per cent.

Growth is being driven in part by a shortage of homes coming onto the market, with a 25 per cent fall in volumes of properties for sale in the first six months of the year, compared to the same period in 2020.

It’s expected that this will continue to edge upwards to six per cent over the next few months, before falling back again as we approach the end of the year, as the impact of the extended stamp duty holiday begins to wane.

Discussing the capital’s property market, head of research with Zoopla Grainne Gilmore said: “London has a two-speed market at present, with domestic demand driving price growth in the outer boroughs, while the lack of international business and leisure travel is affecting demand in the more global real estate markets towards the centre of London.

“As covid progresses at different rates across the world, unrestricted travel may not resume for some time yet, but when it does, demand will start to pick up once more.”

As for long-term house price growth, Zoopla analysis shows that Kensington & Chelsea is the number one property hotspot, with homes in the borough seeing prices rise by almost £740,000 in the last 20 years.

 

Looking for London property experts? Get in touch with Charles Neale today.