Exclusive: where UK house prices have risen and fallen in real terms since 2005

Despite all the talk of a property boom, prices have actually fallen in real terms in all but three UK regions since 2005, loveMONEY analysis of ONS data has found.

House prices have fallen in real terms in nine of the 12 UK regions over the last decade, exclusive analysis by loveMONEY has found.

The findings are surprising as house price reports often paint a picture of property values booming. However, none of these address the question of whether house prices are keeping pace with inflation.

loveMONEY analysed house price data from the Office for National Statistics between 2005 and 2015 and then adjusted prices for inflation.

Here’s what we found.

UK region	Average property price 2005*	Average property price 2015*	What average price should be in 2015 in line with inflation**	Gain or loss in real terms
North East	£118,279	£121,316	£159,308	-£37,993
North West	£126,355	£139,919	£170,186	-£30,268
Yorkshire and The Humber	£125,859	£141,870	£169,518	-£27,648
East Midlands	£140,046	£159,569	£188,627	-£29,058
West Midlands	£145,496	£164,532	£195,968	-£31,435
East of England	£177,150	£239,758	£238,601	£1,157
London	£235,329	£425,134	£316,963	£108,171
South East	£198,984	£276,942	£268,010	£8,931
South West	£178,960	£218,993	£241,039	-£22,046
Wales	£127,647	£138,632	£171,926	-£33,295
Scotland	£104,860	£136,887	£141,234	-£4,346
Northern Ireland	£119,746	£115,434	£161,285	-£45,851

*Figures from ONS data

*Figures obtained using Bank of England inflation calculator

Where values are down

If you’re a homeowner in Northern Ireland, you’re likely to have suffered the most, with the average house price falling £45,851 in real terms.

Had prices kept pace with inflation, the average home would have cost £161,284 by the end of 2015, but instead it stood at just £115,434.

The area that has seen the second biggest ‘falls’ is the North East, where house prices are almost £38,000 lower in real terms.

This is followed by Wales (£33,295) and West Midlands (£31,435).

Of all the regions that have seen values fall, Scottish homeowners were the least affected, with inflation-adjusted prices down £4,346.

Where values are up

As we mentioned earlier, only three areas have outpaced inflation over the last decade.

You probably won’t be surprised to hear London tops the list, but the figures are still staggering.

The average home in the English capital now costs £425,134 – that’s £109,000 more than the inflation adjusted price from 2005.

In a very distant second on the list is the South East, where house prices are up just under £9,000 in real terms.

The only other region to beat inflation is the East of England, where prices are £1,157 up.

Compare mortgages with loveMONEY

Don’t miss these:

Why mortgage lenders turn you down

Opinion: we need to build more homes for later life

Downsizing to fund retirement 'a delusion for millions of people'

10 incredible home conversions you just have to see