Halifax: House prices up 187% since mid-90s

The housing market recovery that took place in 1996 heralded a trend of rising house price inflation that has led to property prices increasing by 187 per cent, according to research by Halifax.

An average increase of 10.6 per cent per year has taken place over the past decade, bringing the average price of a house from £62,453 in 1996 to £179,425 this year.

Halifax reports that, in comparison, stock prices rose by 61 per cent over the same period, nominal earnings increased by 54 per cent and retail prices climbed by 31 per cent.

The upward trend in house prices has been even more pronounced in the capital, where growth of 240 per cent, or 12.4 per cent per year, has occurred since 1996.

However, the downturn that London experienced prior to the recovery was just as severe, with prices falling by 23 per cent between 1989 and 1996.

Tim Crawford, group economist at Halifax, commented: "The premium for living in London has increased over the last ten years as the average property price in the capital has more than tripled. The south-west has emerged as a highly sought after destination, led by Cornwall.

"The housing market in Northern Ireland has seen well above average house price growth, led by Newry and Antrim, two of the five top performing towns in the UK since 1996."

The smallest increase across the UK took place in Scotland, according to Halifax, where prices inflated by 110 per cent, or 7.3 per cent every year.