Despite a booming property market and house prices currently hitting an ‘all-time high’, they still haven’t peaked before the financial crash in all but three parts of the UK, though the inflation is factored in, new data shows.
Research from Warwick Estates highlights land register data which shows average house prices in Britain currently stand at a staggering £ 253,382 – 34% above the market peak of £ 189,199 in September 2007 , before the worst housing market crash in recent times. brought the market to its knees.
However, while the market is currently turning red following the stamp duty holiday, research from Warwick Estates shows that it has not quite hit the same level as in 2007.
The company’s research shows that adjusting for inflation, the average house price of £ 194,764 before the financial crash would be equivalent to £ 276,250 in today’s market. This means that the current average house price of £ 268,291 is still around -3% below historic highs.
The North East is the region currently furthest from the pace from its pre-financial crash peak of £ 139,400. While house prices are currently 1% higher today at £ 140,606, they are actually -29% lower taking inflation into account.
Scotland (-17%), the North West (-15%), Wales (-15%) and Yorkshire and the Humber (-15%) are also home to some of the lowest real estate values when the ‘we take inflation into account and compare them to their 2007 highs.
Currently, only three regions show higher average house prices compared to their 2007 highs and after accounting for inflation.
Before the financial crash, the average house price in London was £ 298,596 before the market crash. Today that has risen 69% to £ 503,308. Even taking inflation into account, current average house prices in London are 4% higher than the pre-financial crash peak seen in early 2008.
The East of England and the South East also saw an increase in stamp duties pushing house prices above their 2007 highs. Even after adjusting for inflation, the average house price is now 4% higher in the east of England and 2% higher in the south-east.
Emma Power, COO of Warwick Estates, commented: “The market is currently performing very well, with house prices reaching historic highs in all parts of Britain thanks to the further increase in stamp duty vacations.
“We are also seeing market values hovering around 34% higher than their pre-financial crash peaks and therefore the overall market indeed remains very healthy.
“However, factoring in inflation, we have yet to see a full return to shape in all parts of Britain and, in fact, homes in just three areas are worth more than their peak prices. of 2007 taking inflation into account.
“That said, with the market moving at the current knot rate and likely to do so for the remainder of the year, it may not be long before the overall market breaks past the 2007 pre-crash financial highs. . “