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64: UK housing market charts and statistics


05-13-2006

UK House Prices from Halifax and Nationwide

This is an experimental house price charting tool using data from the Halifax and Nationwide monthly house price indices and the ODPM/LR mix-adjusted index.

UK House Prices Graph

GlobalHousePriceCrash.com

 

Annual House Price Inflation (Nationwide)


The ODPM has carried out a comparison between their statistics and those of the Nationwide and Halifax. These are the figures for annual house price inflation, in percentage terms, since 1984.

Source:
ODPM Table 521.

Graph for Annual House Price Inflation (Nationwide)

(Real) Inflation Adjusted House Prices


 

One of the single most interesting graphs you will ever see on house prices. This graph takes the average house price for each quarter since 1974 and adjusts it for inflation. The graph therefore shows 'real' house prices as opposed to nominal.

By adjusting for inflation we can compare the rises and falls in the price of houses with those of other everyday items which we buy. It allows us to see just how sharp the house price falls of the early seventies, early eighties and early nineties were.

It also shows us that todays prices are higher that ever before in real terms.

For many the surprise is that if you bought a property in 1989 in real terms you would not have made a profit until 2001.

 

Graph for (Real) Inflation Adjusted House Prices

ODPM : Number of homes built by local authorities


 

In the 1950s LAs built as many as 200,000 homes per year. In 2004 they built just 133.

Source:
ODPM, table 241. 


Graph for ODPM : Number of homes built by local authorities

Amount lent for remortgages


 

These statistics show the amount of money (in m) borrowed each quarter for remortgages. The figures start in 1992, before then remortgages were classed under 'other'.

The Council of Mortgage Lenders splits the mortgage market into three types of advance: loans for house purchases, remortgages and other (eg. buy-to-let).

Source:
Council of Mortgage Lenders (Table M1)

Graph for Amount lent for remortgages

Number House Sales per Year


 

They show the dramatic increase in sales in the late eighties boom - partly due to the availability and subsequent withdrawal of tax relief on mortgage interest (MIRAS). They also clearly demonstrate how strong the market was in 2004 - 1.79 million homes changed hands.

Figures from the Land Registry suggest around 900,000 properties changed hands in 2005. Considerably less than the previous years high.


If you would like a better guide please look at the house sales per quarter graph.

Source: ODPM Table 532

Graph for Number House Sales per Year

Percent of Mortgages that are Interest Only


 

This shows the proportion of mortgages paying interest only.

The Council of Mortgage lenders does not have any data for 1978. We are going to find out why and let you know.

Source: CML Table ML6

 

 Graph for Percent of Mortgages that are Interest Only

LSE: FTSE 100 Share Index


 

The FTSE 100 is the share index of the 100 largest publicly quoted companies. Together these shares are worth around 80% of the UK share market. Its highest point was on Millennium Eve when it reached 6950.

After 9/11 and the Dot Com crash it finally bottomed at 3287 in March 2003 during the run up to the war in Iraq.

Since then it has steadily climbed and, at time of writing, stands at 5950.

 Graph for LSE: FTSE 100 Share Index

 

House Price to Earnings Ratio


 

This data is based on average gross earnings (Office of National Statistics) and average house price (Nationwide). We have taken the data back to 1952 when the Nationwide first published its property price information.

For more information about how the Nationwide Index works, its advantages and disadvantages
read this.

Source: Nationwide Statistics.

 

Graph for House Price to Earnings Ratio

Total Number of UK Homes Built Annually


 

Around 200,000 new homes were built in 2004. This is down from a post-war peak of over 400,000 per year in the late sixties.

Source:
ODPM, table 241.

Graph for Total Number of UK Homes Built Annually

UK Annual House Price Inflation (ODPM)


 

The ODPM has carried out a comparison between their statistics and those of the Nationwide and Halifax. These are the figures for annual house price inflation, in percentage terms, since 1984.

Source: ODPM Table 521.

Graph for UK Annual House Price Inflation (ODPM)

 

Number of UK sales per quarter


One of the best guages of the health of the property market is the number of transactions (house sales) that occur.

Source: ODPM Table 532.

Graph for Number of UK sales per quarter

UK Annual House Price Inflation (Halifax)


 

The ODPM has carried out a comparison between their statistics and those of the Nationwide and Halifax. These are the figures for annual house price inflation, in percentage terms, since 1984.

Source: ODPM Table 521.

Graph for UK Annual House Price Inflation (Halifax)

UK Population 1956 to 2031 (in 1000s)


 

The UK Population has continued to grow at around the same pace since 1956. The post-war acceleration, which ended in the 1970s has been nicknamed the baby boomer generation.

The slower increase since the 70s has therefore created a serious problem for pensions and public services. That strain becomes increasingly apparent as we move close to 2010 and the period when the baby boomers start to retire on mass.

These statistics include projections up to 2031. The ODPM forecast the UK population rising from a current 60.2m to around 65-66m.

Source: ODPM Table 421

Graph for UK Population 1956 to 2031 (in 1000s)

UK Unemployment


 

Unemployment has fallen over the past decade as the economy has improved. These are the official government statistics provided the Office of National Statistics.

They clearly show the sharp increase in unemployment suffered during the early nineties recession.

 


Graph for UK Unemployment

UK Interest Rates


 

The Bank of England has set UK interest rates since Labour came to power in 1997. Since the early nineties rates have gone lower and lower. They reached their lowest point, at 3.5% in 2003.

Since then they have risen although they were cut in October 2005.

Graph for UK Interest Rates

 

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