How Much Have House Prices Increased By?

House prices in the UK have increased by 179% in the past decade.

This is far higher than the consumer price index. The CPI has averaged 2.0%, compared to an annual house price inflation of 17.9%

Areas which have seen the fastest increases in prices include:

• London,
• South East
• Midlands

However, the outlook for 2008, appears quite different. Most commentators predict that national house prices will fall. Although, as I argue in this post - Housing Market crash?, I feel a crash is unlikely.

Furthermore, despite the widespread doom and gloom spread by many, some areas are still witnessing house price rises. Halifax predict that Scotland and the south will continue to see rising prices in the coming year. This is due to the shortage in supply and continued increase in demand as a result of a rising number of households.

• House Prices increase by 179%