1.75 million homes have fallen in value over the last 10 years, research reveals

13 September 2016

Over 1.75 million privately owned homes across Great Britain have fallen in value since 2006, compared to 4.8 million in other locations which have grown by more than 50 per cent, according to research by real estate advisor, Savills. Equating to nearly 8 per cent of all privately owned houses across the country, the analysis highlights the continuing uneven distribution of wealth between the North and South of the country with homes in the North of England hardest hit over the last decade.

Some 4.8 million homes across Great Britain grew in value by more than 50 per cent in the 10 years to June 2016 including all of London’s 2.4 million privately owned homes and one third of all those in the wider South of England. Of these, nearly 650,000, or less than 4 per cent of all those privately owned, saw prices double with London boroughs seeing some of the strongest growth. Homes located in the boroughs of Haringey and Southwark increased over 110 per cent in value whilst those in the City of London performed strongest with prices increasing 174 per cent.

Homes in Middlesbrough and Hartlepool saw some of the largest decreases in value, with prices falls of 6 and 14 percent respectively. In total, some 1.4 million homes in the North of England fell in value over the last 10 years compared those in the south of the country.

At the same time, over 9 million homes or nearly 43 per cent of all private housing stock in Great Britain, including almost 1.1 million homes in the South of England, failed to show any growth of more than 20 per cent. Notably however defying the North-South divide rule, homes in the Shetland Islands saw prices grow 146 per cent, the only Scottish local authority to double in value.

Graph showing house price growth by region

Lucian Cook, head of Savills UK residential research comments: “The analysis underscores the divergent nature of the UK housing market and confirms the uneven distribution of house price growth across the country. Whilst London and the South of England have hugely benefited over the last decade, great swathes of the rest of the country particularly in the North, are yet to see house prices increase over any sustained period and have been slower to recover since the economic crash of 2009”.

 

 
 

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