Experienced investors who look at longer-term trends rather than focusing on monthly movements know that UK house prices have almost tripled over the past 20 years.
However, for most buyers it is “impossible” to ignore the monthly reports about property pricing especially when you are about to spend all of that cash, and we are in a market crisis situation, but the facts speak volumes!
Research shows that in 1999 the average house price in the UK was £77,961. Now that figure is £230,735 an increase of nearly 200%, a significant increase. When broken down by region you can see how house prices have increased at different rates:
Let’s look back over the historical crisis situations – remember 2008 and 2009? In twenty years` time will we look at a graph of the last twenty years and see something similar to the one below?
As you can see from the data, fluctuations and corrections can look very incidental over the longer period and it does not take long ( relatively speaking) for the trend line to be back on track if you take a long term view … in the 1950’s average price £1891, by the 1980’s £39500 and today around £250,000… look to the horizon not to the end of the garden path!