Pre 1919 UK property prices have increased the most in last 25 years
|Friday, 02 December 2011|
Properties built in the UK before 1919 have seen the biggest surge in prices in the last 25 years, according to new research published today (Friday 02 December).
The Halifax Property Age Review, which tracks price movements for four defined property age bands, has found that pre 1919 properties have risen by an average of 461%, equivalent to £516 per month from £33,619 in 1986 to £188,473 in 2011.
‘The age of a property often determines its size, its style and location. Properties from the Victorian or Edwardian era tend to be in higher demand as there are fewer of them, they are often larger, situated in desirable locations, and have a popular style. It's easy to see why pre-1919 homes witnessed such a dramatic increase over the past twenty five years,’ said Martin Ellis, Halifax’s housing economist.
After pre 1919 homes, properties built since 1960 have seen the next largest rise, increasing over the last twenty five years by 348% to £169,168. On the other side of the scale, however, properties built between the end of the Second World War and 1960, a period which saw the advent of the high rise and of more European open plan homes, have seen the smallest increase in prices with an average rise of 249% over the period.
‘Modern properties, built since 1960, have their own pull, which is sometimes linked to convenience; whether it is location on a commuter belt or the fact little extra work is needed. Properties built between the end of the Second World War and 1960, on the other hand, include many smaller properties, which will contribute to the smaller rise in price over the last twenty five years,’ explained Ellis.
However, a significant reversal has occurred since the housing downturn in 2007, the research also found. While houses built before 1919 have seen the largest price growth over the past 25 years, they have performed the least well since 2007 with average prices contracting by 30%.
Property values for those built between 1919 and 1945 and 1946 to 1960 have declined by a quarter in the same period, while the average price of houses built since 1960 has fallen the least since 2007.
‘There are many intricate reasons for the reversal in fortunes for pre 1919 homes since 2007, of course. It may be that demand for larger properties has dipped more than for smaller properties in the context of more constraining economic conditions since 2007,’ said Ellis.
The research also reveals that houses built before 1919 are on average the most expensive with an average price of £188,473. The least expensive are those built over the period 1946 to 1960 with an average price of £144,988, 15% below the average price for all properties of £172,506.
Also price growth over the past decade has been a lot closer. Over the last ten years, average prices have risen most for pre 1919 properties and those constructed after 1960, with both increasing by approximately 60%. Properties built between 1946 and 1960, which saw the smallest gains over the last quarter of a century, have also seen the smallest gains in the past ten years with an average rise of 48%.
The most expensive properties across all age bands are in Greater London. Properties built before 1919 have an average price of just under £361,000 in the capital.
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