2010s were weakest for house price growth since 1990s

first_imgHome » News » Housing Market » 2010s were weakest for house price growth since 1990s previous nextHousing Market2010s were weakest for house price growth since 1990sResearch by the Nationwide reveals how Brexit, Stamp Duty and tighter lending criteria applied the brakes to price rises.Nigel Lewis8th January 20200448 Views A new report from the Nationwide has revealed the harm done to house price growth during the 2010s by a basket of different politically-driven problems including Brexit, increased Stamp Duty and tighter lending rules following the financial crisis.House prices rose on average by 33% across the UK during the decade, much less than during the 1980s (+180%) and noughties (+117%) but more than during the recessional 1990s (+21%).And despite recent problems within the capital’s property market, Greater London significantly outperformed the rest of the UK.Its house prices increased by 66% during the ten years covered by the Nationwide research, while London’s commuter towns saw house prices increase by 54%.Also, despite talk of a booming property market at the moment outside London and the Home Counties, house price rises were still weakest in the North and Northern Ireland, improving the further south you look, Nationwide’s report shows.But its Senior Economist Andrew Harvey (left) reveals that, despite slower house price rises, affordability remains a problem.“House price growth has continued to exceed earnings growth, resulting in a further rise in the house price earnings ratio,” he says.“At the end of 2019, the First Time Buyer house price to earnings ratio stood at five, close to 2007’s record high of 5.4, and up from 4.4 at the end of 2009.“The last decade has also seen a significant widening in the gap between the least affordable and most affordable regions.”ReactionJonathan Samuels, CEO of the property lender, Octane Capital, says: “It’s not often that you celebrate weaker growth figures but the performance of house prices in the 2010s may be an exception to the rule.“Affordability is still a major hurdle after just 33% growth so if the trajectory of the noughties had continued the market would have been beyond the reach of many more people.“For the property market, the cooling of price inflation triggered by the decision to leave the EU was arguably a net positive, especially in London and the South East.Andrew Harvey Nationwide Brexit stamp duty January 8, 2020Nigel LewisWhat’s your opinion? Cancel replyYou must be logged in to post a comment.Please note: This is a site for professional discussion. Comments will carry your full name and company.This site uses Akismet to reduce spam. Learn how your comment data is processed.Related articles BREAKING: Evictions paperwork must now include ‘breathing space’ scheme details30th April 2021 City dwellers most satisfied with where they live30th April 2021 Hong Kong remains most expensive city to rent with London in 4th place30th April 2021last_img read more