House Price Change
- The price of a typical UK house increased by 1.3% in August 2012
- Prices 0.7% lower than one year ago
- Price of a typical home is £164,729 (Sept 2012)
Affordability of Housing
First Time Buyers – House Price to Earnings Ratio
For UK first time buyers, the average house price is 4.3 times average earnings.
Affordability of Mortgage Payments
Mortgage payments as % of income reached in a peak in late 1989/90 due to record high interest rates. Rising house prices meant that the % of mortgage payments grew in the 2000s. However in 2009, interest rates were cut to 0.5% leading to lower mortgage payments for homeowners.
Interest rates in UK
There has been a dramatic fall in Bank of England base rates (which has continued to remain at 0.5%) but the bank’s standard variable rates have fallen at a much lower rate.
Source: ONS mortgage survey 2012
Further reading: UK housing affordability
more data on housing market supply and future population trends
UK housing construction. see also UK construction
Type of Property
Historical House Prices
House prices adjusted for inflation