"After the global financial crisis between 2007 and 2009, the steep decline in property values reversed considerably, with very strong growth taking place across the majority of the UK"
- Verona Frankish - Yopa
New research by national estate agency, Yopa, analysed the latest figures from the Government’s UK House Price Index, looking at how each area of the UK property market has performed since the end of the last market downturn.
The research shows staggering house price gains since 2009, with prices increasing by 20.2% even after adjusting for inflation to generally wipe out any reductions experienced between 2007 and 2009.
The London market has flourished the most since 2009, with inflation-adjusted property price growth across the region sitting at 39.2% over the last 14 years to reach an average average of £535,597.
This is despite the London market not benefitting to the same extent as other regions when it comes to the pandemic market boom seen in recent years.
Both the East of England (+33%) and South East (+30.1%) have also seen inflation-adjusted house price growth in excess of 30% since the end of the last market downturn.
London, Bristol, Kent and Cambridge are hotspots
Since the global financial crisis seven of the top 10 highest growth areas were in the capital, led by Waltham Forest in North London, where house prices now stand at £501,67, after rising by 68.4% over the 14-year timespan.
After that comes the prime City of London, with an increase of 68.1% and Hackney, at 65.6%.
Outside London, the biggest growth area post-financial crisis is the City of Bristol, where house prices have risen by 48.7% after adjusting for inflation.
Other hotspots are Medway in Kent, with an increase of 47.8% and East Cambridgeshire, where prices increased by 47.4%.
However, while the majority of local areas have enjoyed an uplift in property values since the end of the 2007 market crash, there are as many as 49 pockets of the UK market that have seen a reduction in values after adjusting for inflation.
At the regional level, Northern Ireland (-19%), the North East (-9.8%) and Scotland (-3.1%) have all seen a decline.
Looking in more detail, the city of Aberdeen, known to have struggled due to its reliance on the turbulent oil and gas industries, has seen the market continue to slump by -40%
Ards and North Down (-23.1%) and Belfast (-22.6%) also rank within the top three worst-performing UK property markets.
CEO of Yopa, Verona Frankish, commented: “Higher mortgage and energy costs have dampened the UK housing market, but there are certainly some positives to take from the current landscape. For a start, we’re yet to see any notable correction to house prices and, as history demonstrates, any period of decline is often followed by a period of substantial gains.
“After the global financial crisis between 2007 and 2009, the steep decline in property values reversed considerably, with very strong growth taking place across the majority of the UK, particularly London and the surrounding areas, and that’s even once you’ve adjusted for inflation.
“If the UK is able to steer through this tricky economic period there’s a strong chance that the property market will bounce back stronger than ever in the years to come.”