UK Residential Property - The Facts

Over the past 35 years property prices have risen by an average 11.74% per annum (office of the deputy Prime Minister web site published figures)

The Centre of Economics & Business Research (CEBR) have predicted an average annual house price rise of 6.24% between 2002 and 2020.

The average house price in The UK in 2020 is predicted to be £330,000; as at 2006, the average house price was £173,000.

For the past 50 years, UK house prices have doubled every 7 years on average. The 100 year trend has seen house-price doubling every 10 years.

Typically, rents (from tenanted properties) have doubled every 9 to 12 years and usually lag house price inflation a little. However, during "flat market" periods (where house prices slow/stagnate) the rental market catches up.

Since 1970 there have only been 4 annual price falls in the housing market, the greatest being just 3.8% in 1992 (office of the deputy Prime Minister web site published figures). And do remember how high interest rates were at the time - circa 14%!

There is a national housing shortage in The UK (predicted 75,000 houses per year for the next decade) and The Government are currently offering certain tax breaks to Private Landlords in return for helping them provide extra homes for an increasing rental market.

The UK is an island. When compared with the land mass of the rest of the world, it is a tiny island. Land is our raw commodity. There is no extra supply !