House prices rise by 118% in last decade

House prices increase by 118% to an estimated £3,755bn between 1999 and 2009, says Halifax.

The significant increase of £2,000bn over the 10 year period is equivalent to £33,000 per head of the UK population, whereas the retail price index rose by only 29%.

But since 2007 the value of housing stock in the UK has declined by 8%.

The improvement in house prices in 2009 saw housing value grow by an estimated 2% during the year.

The North-South gap in the value of the private housing stock narrowed during the the decade.

Between 1999 and 2009, the value of housing in the North increased by 132% compared to 109% in the South.

As a result, the north’s share of UK housing assets rose from 41% in 1999 to 44% in 2009.

Martin Ellis, housing economist at Halifax, says: “The past decade has seen a substantial increase in the value of housing assets in the UK, with all regions recording average annual increases of 7%-12%. Notably, there are real signs of a narrowing north-south divide as the northern regions recorded bigger increases.”

Regionally, Northern Ireland saw the biggest increase in housing value with a 198% rise from £31 billion in 1999 to £92 billion in 2009.

The next largest rises were 147% in the North-East, 145% in Scotland, 139% in  Yorkshire and the Humber and 133% in the East Midlands.

The smallest increases were in the 100% in the South-East and 107% in the East of England and West Midlands.