Senior figures from across the industry have responded to Zoopla’s latest research, published today, that reports that one million UK homes having seen a value increase of 50% or more over the past five years, with an average increase of £117,400.
Over half of these homes are in the North West, Yorkshire and the Humber, and Wales with average value increases of £77,100, £86,200 and £90,700 respectively. Homes in the South of England have recorded moderate increases in value, with half increasing by less than 20% and just one in fifty up by 50%.
Furthermore, the portal says, eight in ten homes nationally have increased by over 5% in this time, an average gain of £60,800. House values have increased gradually by an average of 20% since the outbreak of the Covid-19 pandemic in early 2020, with some areas experiencing more significant value increases than others. Zoopla says this is despite a drop in buyer demand in 2023 caused by higher borrowing costs since 2022.
There’s been bad news too – some 13% of homes in London have seen their value fall by 5% or more in the last five years, with losses concentrated in high-value areas like Westminster and Kensington and Chelsea. Aberdeen has seen over half of its homes fall in value, by an average of £25,700.
Richard Donnell, executive director at Zoopla, commented: “Our latest analysis clearly shows there is no single housing market and that house price trends vary widely across the UK, [which] currently has the most homes for sale in seven years. Its critically important serious sellers fully understand the local market dynamics impacting the value of their home and seek the advice of agents on where to set the asking price for their home in order to achieve a sale.”
In response to the findings, Matt Thompson, head of sales at estate agency Chestertons: “In London, buyer demand has remained relatively strong over the past weeks which is resulting in stable or increasing property values in certain areas. Other parts of the capital such as prime central London, however, have seen a slight price adjustment which is giving more domestic buyers the opportunity to purchase a property in sought-after locations within their initial budget.”
Nathan Emerson, CEO of Propertymark: “This rise in house prices is positive for homeowners, especially when considering the current condition of the economy. For people already on the property ladder, this will increase equity, provide greater refinancing opportunities, and may make it easier for those who wish to move into a bigger, more expensive home to do so.
“However, for first-time buyers, this presents the potential for further restrictions such as increased costs, affordability challenges and greater competition from other buyers, which could drive up prices even further. Even with mortgage providers introducing more competitive mortgage deals, help for first-time buyers is needed as house prices continue to rise. This has pushed the average deposit needed to over £70,000, which is likely to be unrealistic for many people.”
