House prices in some areas have risen by more than 500 per cent since the turn of the millennium, new analysis of Land Registry data has revealed.
The typical value of a home has increased by 257 per cent over the last 25 years, according to the analysis by Savills.
It found the average house price across the UK was £88,466 entering the year 2000, compared with £329,988 now.
Some locations, particularly in London, have outperformed the rest of the market by some margin.
London as a whole has experienced the greatest house price growth over the past 25 years, increasing by 357 per cent, presenting buyers in the capital with far larger gains than many other parts of the country.
> What next for mortgage rates – and how long should you fix for?
Within London there are six areas that have seen house prices rise by more than 500 per cent over the past 25 years – most of which are in the east or south east of the city.
Walthamstow has seen the greatest change with the average home increasing by 652 per cent over the past 25 years, with the typical home there commanding £553,018.
Leyton and Wanstead is not far behind. The typical home there has risen by 594 per cent to an average of £617,604.
Parts of Greater Manchester are also giving the capital city a run for its money when it comes to house price appreciation.
House prices in the area of Gorton in Manchester have risen 537 per cent since 2000 to £238,719.
Blackley and Broughton, north of Manchester city centre, has also seen prices boom since the turn of the millenium with the average home there up 517 per cent.
Other areas to make Savills top 20 outside of London include Bristol South, up 489 per cent and Hove in the South East, up 475 per cent.
‘The rise of aspirational urban living has led to the likes of Bristol, Bath, York and Manchester outperforming the rest of the UK since 2000,’ said Lucian Cook, head of residential research at Savills.
‘We have also seen particularly strong growth in desirable coastal and second-home hotspots, exacerbated more recently by the ‘race for space’ when Covid-19 hit.’
Ultimately, wherever people are based in the UK, they will likely have seen strong house price growth since 2000.
According to Savills, all price growth, after adjusting for inflation, happened in the first five years of the new millennium, given market fluctuations which followed over the next 20 years.
‘The stellar price growth that we saw in the first five years of the new millennium sowed the seeds for fundamental change,’ said Cook.
‘The legacy of the credit crunch, including tighter mortgage regulation, heralded the end of long-term inflation-busting house price growth, leading to lower levels of transactional activity and permanently higher deposit hurdles for first-time buyers.
‘This in turn has impacted how we live. Once heralded as a nation of home ownership, owner-occupied households are now in decline, with the private rented sector growing by 141 per cent over the period.’
> When will interest rates fall again? Forecasts on when base rate will be cut
| Area | Av price | 25 year change |
|---|---|---|
| Walthamstow | £553,018 | 652% |
| Leyton and Wanstead | £617,604 | 594% |
| West Ham | £463,120 | 590% |
| Tottenham | £548,994 | 560% |
| Lewisham, Deptford | £530,895 | 537% |
| Manchester, Gorton | £238,719 | 537% |
| Hackney South and Shoreditch | £732,549 | 520% |
| Blackley and Broughton | £213,365 | 517% |
| East Ham | £434,399 | 499% |
| Hackney & Stoke Newington | £701,625 | 496% |
| Camberwell and Peckham | £590,170 | 492% |
| Lewisham West and Penge | £526,629 | 491% |
| Bristol South | £339,912 | 489% |
| Dulwich and West Norwood | £736,053 | 481% |
| Hove | £522,268 | 475% |
| Brighton, Pavilion | £492,457 | 472% |
| Brent Central | £613,892 | 471% |
| Hampstead and Kilburn | £1,211,075 | 455% |
| Cities of London and Westminster | £1,805,986 | 452% |
| Barking | £358,218 | 445% |
| Source: Savills using Land Registry |
