According to a new study, house prices across the UK more than doubled over the course of the Noughties. But in one town the growth was even more spectacular...
The last decade may have ended in a turbulent fashion for the property market, but according to the latest Halifax house price index UK property values still rose by an almighty 105% over the course of ten years.
That represents the biggest rise in real terms of any other decade since the 1950s - not bad when you consider that house prices fell 20% between 2007 and 2009.
So which towns have been the biggest winners of this phenomenal growth?
House prices up 207%!
If you live in the town of Redruth in Cornwall (or just own a property there) then you will be absolutely laughing - since the end of 1999, house prices in the town have jumped a frankly astonishing 207%. That represents a rise in average house prices from just £59,372 at the start of the decade to £182,173 currently .
Cornwall clearly represented great value in terms of house prices at the turn of the millennium, with Penzance seeing the second largest growth in property values (188%) and Helston in fourth spot (174%).
Here's the top five in full:
|
Town |
Region |
Average house price in Q4 1999 |
Average house price in Q4 2009 |
Increase |
|
Redruth |
Cornwall |
£59,371 |
£182,173 |
207% |
|
Penzance |
Cornwall |
£71,058 |
£204,470 |
188% |
|
Ramsgate |
Kent |
£59,979 |
£168,300 |
181% |
|
Helston |
Cornwall |
£83,943 |
£230,270 |
174% |
|
Wallasey |
Merseyside |
£50,785 |
£138,292 |
172% |
Why the huge rise?
So why did these towns see such phenomenal growth?
One point that Halifax was keen to stress was that most of the best-performing towns began the decade with prices noticeably lower than the national average at that time of £81,596. This is of course a fundamental point if you are hoping to make some serious cash from the value of your property - you need to unearth a bargain.
In addition, each of the top ten towns are either on, or very close to, the coast. Clearly the Noughties saw demand for living by the seaside skyrocket!
Living by the sea has long been seen as a real luxury, and it's unlikely that will change any time soon (climate change allowing!) so purchasing property at least near to a coastline probably presents an opportunity for growth in the value of your home.
A future of house price falls?
Obviously this is all great news if you happened to buy a house in Redruth in October 1999, but what can the rest of us expect from house prices in the next decade? Has the bubble well and truly burst?
Personally, I'm not convinced it has, though I'd be astonished if any town in the UK saw such phenomenal house price growth by the final quarter of 2019.
Things might be a little tricky for a year or so, particularly with the economy remaining on life support, but I still think the fundamentals of the UK housing market - the severe lack of supply, the British obsession with home ownership, and the growing population - will result in house price growth over the next ten years.
If the mortgage market recovers sufficiently for some truly competitive first-time buyer tailored products to be launched, then house prices could really jump again.
Of course I could be wrong. Our poll of lovemoney.com readers and their predictions for house prices last year suggested there are further falls around the corner. Check out our video, Property prices will fall, for a full look into what you reckon will happen to house prices - and why.
However, you don't just have to rely on the housing market itself to influence your home's value.
Do it yourself!
There are all sorts of things you can do to your home which can ramp up its value, from a fresh lick of paint to an extra room or an extension.
We have a terrific make home improvements goal full of hints and tips on the various changes, big and small, which can add thousands to your home's value. Why not give them a try?
Location, location, location
Cliché maybe, but where you buy your house has a big bearing not just on its value now, but in the future too.
Research by Nationwide last year found that living near a top performing primary school can boost the value of your property by a whopping £20,000. Ensuring your property is near an up and coming school can therefore not only present a great opportunity for your kids' education, but also for your chances of making a few bob when you eventually sell up!
Your neighbours can also make a significant difference - living next to a dilapidated home for example can slash as much as 10% off the value of your home. That's some serious cash you're waving goodbye to, through no fault of your own!
Do things the Scandinavian way
I remember when my parents moved years ago, all the family pictures and things demonstrating we lived there (in other words my Playstation and posters from 'lads mags') were put away at the back of cupboards.
It didn't really work, but apparently our Nordic friends take things to an even more extreme level when selling their property, and get a small fortune back as a result. Why not have a read of Sell your home like a Norwegian and make thousands and see if it could work for you?
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Get help from lovemoney.com
If you fancy getting the best deal you can for your home, then lovemoney.com can help.
First off, why not try following some of the hints and tips in our goal: Make home improvements
Next up, have a watch of this video: House prices have bottomed, says Sarah Beeny
And finally, if you need some advice on great ways to add a few bob to the value of your home, why not pick the brains of your fellow lovemoney.com users in our Q&A section?
What do you think will happen to house prices?
Tell us your views using the comments box below!
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