What has happened in the property market during the last 50 years?
It’s no secret that today’s property market is thriving at peak buoyancy, with record house prices and demand going through the roof, which is why it’s easy to overlook the history of the market which brought us to this point.
However, while the market reaches a fruitful era for both buyers and sellers, there are notable periods of buoyancy over the last 50 years which could put things into further perspective.
While the market continues to change and grow in today’s climate, in order to look forward and predict future trends, it’s important to look back. New research from GetAgent tracked house price data going back as far as the 1970s, adjusting for inflation, to see which decade has been the most fruitful for the nation’s homeowners. *
The research delves back into January 2010, when the average UK house price was £167,469, and climbed to £231,792 by the end of the decade at a 38.4% increase. However, after adjusting for inflation, the rate of house price growth recorded between January 2010 and December 2019 sits at around 14.8%, which was the second lowest rate of house price growth in any of the past five decades.
In fact, it’s only been the 90s, when the market has posted the worst performance, with house prices increasing by just 9.7% after adjusting for inflation.
The noughties was by no means, a bad decade for homebuyers, but it still ranks just third where inflation-adjusted house price growth is concerned, with the average UK house price rising by a notable 66.8%.
The research placed the 70’s in second place of the ranking, with house prices climbing by 69.8% after adjusting for inflation, leaving the 80’s to be crowned the best decade to have bought a home.
After adjusting for inflation, the average UK house price was just £66,783 back in January 1980. By the end of the decade, the cost of buying bricks and mortar had climbed to £127,207, a 90.5% increase.
Colby Short, Co-founder and CEO of GetAgent.co.uk, commented: “There’s plenty of reasons why we may argue one decade was better than the rest, but when it comes to house price appreciation, the eighties takes it by some margin.”
"Even after adjusting for inflation, today’s generation of homebuyers may well find it unfathomable that the average home cost just shy of £67,000 back in 1980. So, while today’s buyers have had to contend with some of the lowest levels of housing affordability in history, they may well spare a thought for those who saw the cost of buying increase at such an alarming rate during their lifetime.”
"With the market currently running red hot and no end in sight despite the wider economic landscape, it will certainly be interesting to see where we finish by the end of this decade, and if the eighties will finally be relieved of the crown when it comes to the highest rate of house price appreciation in a single decade.”
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This article was originally published by BriefYourMarket and is reproduced here with their permission.
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