02 Jan, 2020/ by Homeward Legal /Sale & Purchase, Seller

UK house prices have more than trebled since the start of the 21st century.

Analysis by the Halifax has revealed that the average price of a home has risen by an incredible 207 percent in the last 20 years.

In Greater London, the rise has been even more steep, up by 239 percent since the millennium.

Meanwhile, first-time buyers are paying prices 264 percent more than their counterparts at the start of the century.

Average house price change from 1999

According to the Halifax, the average price of a UK home at the end of 1999 was £91,199.

By November 2019, the average price of a home sat at £279,997.

Home buyers in London were paying on average £157,453 for a home in 1999 compared to £375,983 in 2019.

The steep rise in house prices means affordability has fallen, thanks to a growing gap between average earnings and prices.

Bargains to be had

Russell Galley, managing director of Halifax, said; "The rise in house prices in London since the turn of the century is well-documented.

"And a sharp decrease in affordability just shows how quickly the market has moved.

"Conversely, there are bargains to be had elsewhere, such as in the north, Scotland and Northern Ireland. There prices have been slightly more subdued and properties compared to earnings are comparatively affordable.

"A renewed focus on housing policy and increased investment aimed outside the south-east, for example, may go some way to rebalance the differences."

First-time buyers key to housing market

Galley added: "New buyers are hugely important to the overall health of the UK housing market. Despite a shortage of homes, and the ongoing challenge of raising deposits, we know the number of first-time buyers is moving in the right direction.

"Key to this is continued low mortgage rates and a wealth of options available to first-time buyers, helping to support even more step foot on the ladder."

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