A recent study by easyMoney has delved into the progression of the UK’s housing market since the 1970s. By examining historical data, the research details the pace at which average house prices have soared past every £50,000 milestone. Surprisingly, even with recent market deceleration, their projections show the average house price will only breach the £300,000 marker in August 2025.
Tracing back, the data highlights that the UK’s average house price first touched the £10,000 benchmark in January 1976.
Progressing from there, it spanned 4,565 days, equivalent to 12.5 years, to reach the £50,000 mark by July 1988. This span witnessed the UK grappling with the early 1980s economic slump.
From £50,000, the next jump to £100,000 took 4,963 days or 13.6 years, hitting this in February 2002. This duration significantly reflected the impact of the 1990s financial dip.
Contrastingly, a mere 2.5 years (or 912 days) were enough for the average house price to hit the £150,000 by August 2004. This rapid surge possibly echoes the ramifications of the mortgage bubble spurred by the subprime scandal, initially in the US, which eventually precipitated the 2007/8 financial meltdown.
This global financial debacle considerably stalled the UK’s housing market growth. Consequently, it took a lengthy 11 years (or 3,986 days) to crest the £200,000 by July 2015.
Post this financial downturn, a rejuvenated market required only 5.6 years (2,070 days) to hit the £250,000 mark by March 2021, bolstered by the pandemic-induced housing market surge beginning in 2020.
Currently, with the average house price hovering close to £290,000, it might seem that the £300,000 mark is just around the corner.
Yet, the predictions from easyMoney, accounting for a subdued market scenario, suggest the £300,000 milestone will be achieved only by late August 2025. This indicates a 4.4-year window between the £250,000 and £300,000 markers, which, interestingly, is still a shorter duration than the 5.6 years needed to progress from £200,000 to £250,000.
Jason Ferrando, CEO of easyMoney says:
“On a short-term basis, the UK housing market is certainly susceptible to wider economic ebbs, flows, and woes. But when you step back and look at the market’s long-term performance, it’s clear how strong, reliable, and resilient UK housing is as an investment asset.
As such, if investors are attracted to the property market, we would encourage them to shake off any concerns about the immediate economic landscape and instead look at long-term performance and consistency of the market’s performance over the last 50 years.”
