Average UK house prices have risen by just 12.1% over the past decade after the impact of inflation has been factored in, analysis by Yopa has found.
The estate agency found that, despite headline house price growth of almost 52% from an average of £176,561 in December 2014, to £268,087 in December 2024, the real rate after adjusting for consumer price inflation was much lower.
New-build homes have seen a steeper rise, with average prices up by 79% from December 2014 to 2024, or by 33% after consumer price inflation has been taken into account.
Yopa chief executive Verona Frankish says: “The topline rate of house price growth seen over the last ten years alone can be pretty scary at first glance.
“However, the reality is that this rate of growth is far more palatable when taking inflation into account, although it’s fair to say that the plight of the nation’s homebuyers certainly hasn’t improved when it comes to the affordability of purchasing a property.
“What is interesting is that the gap between the cost of a first home and the rest of the market has remained largely consistent, as the cost of a home across both market segments has increased at almost identical rates.
“The same certainly can’t be said for the new-build sector though, with the value of a new home skyrocketing over the last decade when compared to the increases seen across the rest of the market.”
