One million UK homes have surged in value by 50% or more since the pandemic, according to new research from property website Zoopla, with average gains reaching £117,500.
Nationally, house values have increased by around 20% over the past five years. However, there are significant regional disparities, with the North of England and Wales seeing the strongest growth. More than half of the homes that have seen their values rise by 50% or more are located in the North West, Yorkshire and the Humber, and Wales, which have seen average increases in value of £77,100, £86,200, and £90,700 respectively.
According to Zoopla, growth in these areas is down to several factors, including buyers prioritising more space and better value, prompting them to buy in areas that they may have previously overlooked. Steeper rents in many of these regions have also made buying a more appealing and cost-effective option for first-time buyers.
In contrast, southern England recorded more modest growth. About half of all homes in the South increased in value by less than 20%, and only 2% saw increases over 50%. The capital has fared worst, however, with 13% of homes having lost 5% or more in value since 2020. Most of these losses are focused in high-value boroughs such as Westminster and Kensington and Chelsea.
A large proportion of properties in the South which have seen their values increase significantly are in desirable coastal destinations and areas of natural beauty. For example, homes in the Isle of Wight which have increased by more than 50% in value over the past five years, has seen average gains of £182,400.
Richard Donnell, Executive Director at Zoopla said: “Home value growth has been weaker across southern England and particularly in London. A combination of high prices and higher mortgage rates have reduced buying power and this has been reflected in flat prices and modest price falls in inner London.
“The UK currently has the most homes for sale in seven years. Its critically important serious sellers fully understand the local market dynamics impacting the value of their home and seek the advice of agents on where to set the asking price for their home in order to achieve a sale."
