Residential property has an unequalled track record of producing high and consistent capital growth. In the period since the Second World War the value of UK residential property has on average doubled every 9 years.

Yes, there have been temporary dips in property values but property has subsequently recovered and values have gone on to increase.

For example, the Nationwide house price survey shows the average price of a house in Quarter 2 1989 was £116,674. Prices then started to fall and reached a low of £73,079 in Quarter 4 1995. However, prices then started to rise and by Quarter 1 2002 the average price had climbed to £118,100, a figure just in excess of the previous high. The figures available for quarter 4 2008 shows an average value of £156,828.

So even accounting for the recent falls in property value the average house is still worth more than twice the figure from 13 years ago.

This entry was posted on Friday, March 13th, 2009 at 9:41 am and is filed under property market general, property prices. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.