Research by property developer Stripe Property Group, has revealed which regions of the UK have posted the strongest performance when it comes to house price appreciation over the last 50 years once adjusting for inflation.
The research shows that: –
- Back in 1972, the average UK property was valued at just £5,158. Once adjusting for inflation, this still amounts to a very affordable £49,333 by today’s standards.
- Today, however, the average UK homebuyer is forking out £278,436 on the average property.
- That’s a total increase of 464%, with house prices climbing by an average of 9.3%, or £4,582, every single year over the last 50 years.
- Perhaps predictably, London sits top when it comes to property price performance over the last half century. Even after adjusting for inflation, London house prices have increased by a huge 13.5% per year on average, up 677% in total. That’s an average increase of over £9,000 every year over the last 50 years.
- However, this strong property price growth isn’t confined to the London market alone.
- Both the East Midlands and South West have enjoyed annual rates of growth averaging 10.7% per year since 1972, that’s a respective annual increase of £4,051 and £5,2888.
- This average annual rate of growth also exceeds the 10% threshold across four other UK regions, with house prices increasing by 10.6% per year across the East of England, South East, North West and North East.
- At £6,482, the South East has also seen the largest average annual monetary increase outside of London.