UK housing market at key point following 16 months of gains
14th July 2010
- UK homeowners claw back 50% of value lost during housing downturn
- Average UK home value now £218,705, up £21,667 since March 2009
- Property in England bounces back far better than Wales and Scotland
- London house prices recover all lost ground and stand at new highs
- Semis rebound off lows quicker than others. Flats continue to struggle
As we enter the second half of 2010, the UK residential property market is at an important juncture, which will determine the direction of house prices for the months to come. UK house prices have risen steadily for the past 16 months, bouncing off their lows of March 2009 and recovering half of the value lost during the prior 16 month period of price declines from the November 2007 market peak.
The average UK home is now worth £218,705, up £21,667 (11.02%) since March 2009, according to property website Zoopla.co.uk, which provides free value estimates for every UK home. However this figure remains more than £20,000 below the November 2007 peak, when average house prices reached £239,063, showing that despite the rebound over the last 16 months only half the ground lost over the prior 16-month period has been made up.
Property prices in England have recovered more ground than elsewhere, having climbed 11.46% since March 2009, with the average home in England now worth £226,342, but still well below the level reached in November 2007 of £246,714. By contrast homes in Wales have been much slower to rebound, up only 7.07% since March 2009 to a current average value of £154,521, a long way short of the £173,388 peak in November 2007. Scottish property values have climbed 9.12% on average to £156,217 over the past 16 months, having fallen 18.1% in the prior 16-month period when they reached a high of £174,805.
And whilst the dramatic fall in house prices during the 16 months from the November 2007 high to the March 2009 low affected all areas of the country, the rebound in the 16 months since has been far more selective. Property prices in the South East have bounced back strongly and have regained most of the value lost during the downturn. House prices in the South East, which peaked at £291,120 in November 2007 had fallen sharply by 18.24% to £238,017 by March 2009, and have since risen by 17.57% to £279,848, according to Zoopla.co.uk. In contrast, the North East saw average house prices drop 16.11% from £182,390 in November 2007 to £153,002 in March 2009, and have since only managed to regain 4.98%, standing today at £160,627.
The London market has seen the most dramatic turnaround, with average house prices today at new highs and above the levels seen in November 2007. Having fallen by 16.06% from a high of £410,577 in November 2007 to a low of £344,635 in March 2009, London house prices have made up all the ground lost in the downturn and now stand at £418,802. London house prices have risen by a remarkable 21.52% over the past 16 months.
The rebound in house prices since March 2009 has been strongest for semi-detached properties, which have risen by 12.83% over the past 16 months. The average semi is now worth £191,019. At the other end of the scale, flats across the UK have been much slower to rebound and have only gained 7.78% in value over the past 16 months, having fallen by 17.34% in the prior 16-month period. The average flat in Britain is now worth £199,573, down from a peak of £224,021 in Nov 2007.
Nicholas Leeming, Commercial Director of Zoopla.co.uk, said: "We have reached an important point in a market seeking direction and have come through two periods of equal length and opposing directions. Despite the most recent 16 months of gains, only half of the value lost in the prior 16 months has been recouped. It is entirely possible that we may now have a similar length period of time where the market hovers without a clear direction."
Average house prices by Country
|Country||Jul 2010||Mar 2009||Last 16 months||Nov 2007||Prior 16 months|
Average house prices by Region
|Region||Jul 2010||Mar 2009||Last 16 months||Nov 2007||Prior 16 months|
|Yorks & Humber||£145,783||£134,758||+8.18%||£164,654||-18.16%|
Average house prices by Property Type
|Property type||Jul 2010||Mar 2009||Last 16 months||Nov 2007||Prior 16 months|
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Notes to editors
Zoopla.co.uk is the UK's most comprehensive property website, focused on empowering consumers with the resources they need to make better-informed property decisions. We help our users make sense of the residential property market by combining property listings with market value data, local information and community tools.
Zoopla.co.uk was founded on the principles of transparency and efficiency and everything we do aims to make the market more effective for both property consumers and professionals alike. By combining free, instant value estimates for every UK home with sold prices, local market information and hundreds of thousands of properties available for sale and to rent, Zoopla.co.uk has rapidly become the ultimate destination for property consumers to search for property and do their market research. Our unique features allow users to gain an insight into the market and discover information they won't find anywhere else. And, as a result, we have become one of the most valued sources of both applicant and vendor leads for UK estate agents.
Launched in 2008, we are the fastest growing property website in the UK, now attracting over 12 million visits per month and are proud to have been awarded numerous accolades including being listed in the Top 10 UK Tech Companies (Guardian) and the Top 10 Most Innovative UK Companies (Smarta 100) as well as being voted the UK's Best Property Portal (Web User, Daily Mail Awards, Website of the Year).
Zoopla Limited is a privately held company with a highly experienced and proven management team, led by Founder and CEO, Alex Chesterman, and backed by well-respected angel investors and leading venture capital firms Atlas Venture (atlasventure.com) and Octopus Ventures (octopusventures.com).