UK House Prices

Charts and Graphs of How Houses have Increased in Price over the Years

by Alastair Taylor

A quick look at graph of house prices shows that there has been a massive percentage increase in the price of UK houses since 1960. This growth in UK house prices has been a steady exponential and will often be used to show how investing in property will always produce a positive return in the long run. Even during the housing crashes of the 70's, 80's and 90's the actual price of a house hardly fell at all. But this is not the full story for housing prices in the UK...

Graph of the price of houses since 1960

Actual increase in house prices in the UK since 1960 - Chart over time

These house prices do not include inflation!

For a realistic view of the price of houses in the UK you need to take inflation (the cost of living) into account. House prices may have gone up over 12,000% since 1960, but the price of a loaf of bread has actually gone up around 3,000% in the same time. No-one is suggesting that you pile all your money into bread to try to achieve long term Capital growth.

The following chart takes into account UK inflation since 1960 and so shows the real increase in the cost of houses in the UK. This chart shows that house prices have not increased as drastically as you may think. House prices have increased by a factor of 4 in real times since 1960. The real value of UK houses has dipped several times. The largest decrease in house prices was in the mid seventies, but there have also been house prices crashed in the early eighties, the early nineties, and also way back in 1950.

What does the future hold for house prices in the 21st century...?

Graph of real increase in price of houses since 1960

Real price of houses in the UK since 1960 - Inflaction adjusted houses price

If you are interested in buying a home check out our Mortgage Comparator

Alastair Taylor



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"can you help... my home was valued at £37500 in 1982, please can you tell me what it would cost in 1991"

Robert

"In January 2003 the government started to drop interest rates knowing this would lead to people buying property.18 months later everyones property had doubled in value,loads of equity,they go spending,big boost to the economy. Then Boom and Bust as always !"

Corrupt

"A pint of beer cost about 8p and my wage was 15p per hour. 2 pints per hour approx. Now it's about 5 pints per hour!! Based on approx £10 per hour today. So it's all relative."

Mike

"Caesar, I'm not sure about the return on a savings account but an investment that you live in has enourmous value. I guess to get a true comparison you would have to figure rent over that period + growth to show what a good return this is. I think people tend to disregard the benefits of the fact you have a place to live."

nick

"my late parents bought there house in manchester (a 3 bed semi with two reception rooms nice gardens in 1937 for £300 i still own that house today and have just had a valuation done in the last 3mnths by a rics surveyor at a price of £220,000 i would love to know if you had put the same £300 in a savings account what that money would be worth today"

caesar investments

"Years ago, couples lived in a spare bedroom whilst they scrimped and saved for a deposit. Now they have two mobiles, ipods, computers, cars and holidays and only after paying these save up a deposit. There is loads of money to pay for housing, it is just being spent at Dixons, Vodaphone, Renault and Easyjet."

Argonaut

"What an appauling website. I sent comments weeks ago and they still haven't been published. Bunch of jokers!! (Admin: My deepest apologies. I have subsequently quit my full-time job and will await peoples misspelled comments so that I can deal with them forthwith and in a serious manner.
Yours A.P. Paul Ing)"

Dor

"I disagree with the previous comment as it's completely unrealistic to think house prices will remain the same for years, and out of sync with all known historic data. Inflation alone will slowly (but surely!) force prices upwards over the next few years. If you are thinking of buying a property, my advice would do it ASAP while prices are modest and whilst there are bargains to be had. If you don't buy soon you'll miss the boat again!"

Dor

"this page gives the wonderful data"

Duyen Brouard

"It is my view that house prices will never increase. Since the sixties wages have constantly risen thereby allowing house prices to rise in proportion. Over the last 10-15 years we have been falsely tricked into believing we had false equity. This was done by governments to enable growth and wealth to be maintained off the back of the masses. The only way to put money in their pockets was to create equity in houses. Seven years ago I returned home from London to Glasgow and was shocked at house prices which were not in line with what the city were paying the workforce. You do not need to be a genius to realise that the huge house prices are not backed by the wages being. Yes we can now have 50 year mortgages with couples getting 6 times their salary but is that right."

Spongo

"Large houses are decreasing in value at the moment but it appears that terraced houses are in great demand and the prices are still climbing, sad for those of us who want to buy a small house!"

Matthew

"When are the prices in Newark, Notts going to fall, as they are not at present!"

Matthew

"As space for available housing decreases the price of housing will of course become more expensive in relation to the average income. This increasing element should factored into your graph, otherwise it projects an erroneous message that house prices are vastly over valued."

Ian Mackay

"soooooooooo how much are they going to fall..?"

georgy

"A logarithmic chart would be more helpful. If you look, house prices are roughly doubling every twenty years, aren't they? There has been no exponential recent growth in prices. It is the absolute price but the rate of doubling that matters and that seems to be very approximately a constant."

M Treadwell

"2004 Price crash - it seems to me that the financial models of these situations are generally poor. Never predicting a significant change from the current trend. Hence, they never seem to predict either a boom or bust. In 2004 people simply thought house prices were overcooked. Which they were and still are compared to long terms trends. However, one can now compare the current situation on a number of pointers with that around 1990 and the market and economy look worrying"

Admin

"What happened to the widely predicted price crash in 2004?"

Matthew

"I would be interested to know what the average house price was in the 1950's in the uk. Where did you get your data?"

Carolyn Doherty

"Very informative - nice to read something balanced"

AJA

"where\'s the chart referred to?"

bokkie