Home prices in all regions of the UK reach their pre-2008 peak

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According to new data released today, 14 years after the credit crisis, home prices in every UK region have reached pre-financial crash levels.

The report may come as a surprise to Londoners, who have been facing rising property costs for more than a decade, but figures show that with home prices surging within two years, the capital is set to recover. The fastest area to move to was Just, according to the home setup service.

Before the financial crash, the average home price peaked at £290,261, returning to that level by 2010. Despite a downturn in the market in recent years – in large part due to how affordable London properties have become – home prices in the capital have risen by $175. percentage since that peak.

The fastest and slowest areas to recover from the 2008 crash

Meanwhile, property values ​​in Durham and Hartlepool returned to their pre-2008 highs this month, the last two places in the UK to fully recover from the crash. Prices in Durham have now risen to £122,300, while in Hartlepool they are back at £133,000 after the property market boomed during the pandemic.

The average UK household reached £190,000 in September 2007 and is now 142 percent higher, at £270,000.

The 10 slowest regions to recover were in the north of England, which, since the recent price jump, pricey southerners look forward to more affordable, spacious homes.

London and its commuter towns accounted for the nine fastest areas to recover, all rebounding within five years of the crash and surpassing previous price highs.

St Albans was the second fastest to recover, followed by Oxford, Cambridge, Woking and Guildford. Windsor and Maidenhead, Chichester and Brighton also recovered in five years or less.

Ross Nichols, co-founder of home setup service Just Move In, said: “The housing market has exploded over the past year, but it’s sovereign to think that every part of the nation’s property prices will be able to recover to that level. It’s been 14 years. Were there before the 2008 accident.

“Hartleypool and Durham are the last two parts of the country to reach that level, while Blackpool and Middlesbrough have only recovered in the last month.

“There is a north-south divide when it comes to recovery, with London and other southern cities booming, while the northern regions are still lagging behind.”

North-South house price divide set to narrow

Savills’ most recent forecast suggested that this trend would change over the next five years.

Estate agents estimate the north-south house price divide is set to close, with prices expected to rise 18.8 percent in the North West and Yorkshire and the Humber, compared to 5.6 percent in London.

“Given that we are in a housing market cycle, the north-south divide in home prices is set to close further over the next five years,” said Lawrence Bowles, director of residential research in Seville.

“London and the South beyond remain an affordability cushion. The government’s leveling-up agenda has the potential to accelerate market rebalancing, but only if it gains meaningful traction.”

Price increases appear more constrained in the London mainstream market (predicted +2% in 2022), which has been limited to more affluent households.

“It shows the extent to which London prices were displaced from the rest of the UK housing market through strong price increases from 2005 to 2016, something so clear that even a decade later, the capital’s large parts of the capital continue to see price increases.” expected to be limited.”

Saviles forecast said London’s home prices from the capital’s main market would pick up.

Separate research from property analysts LonRes showed buyers spent a record-breaking £11.6bn on prime London properties in 2021, the result of a renewed emphasis on larger and more expensive homes.

Marcus Dixon, head of research at Lonres, said: “In 2021 buyers will buy bigger and spend more. Total asset spending exceeded £11.6 billion in 2021, the highest annual spending since LonRes records began in 2000. It went to more than half the houses in total. The best-selling homes in 2021 are valued at £6.1 billion, up 26 percent from the previous record spending in 2014.

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