The housing market has more ups and downs than can be counted, and with the economic changes approaching with Brexit, everything feels a little uncertain.
Using data provided by the Office for National Statistics, Bindman Solicitors has the opportunity to share some insights into housing market trends from 1980 to 2016. Are you buying a residential or commercial property? Read on to find out more about the landscape you’re joining.
First-time buyer numbers are recovering…
1980 there were around 400,000-600,000 first time buyers taking out a mortgage.
This dropped to 300,000-350,000 in the early 1990s, before rising to between 500,000-600,000 in the late 90s.
There was a 31% decline in 2008 to 350,000-400,000, and down to 200,000 between 2008-2011.
The number of first-time buyers is recovering, although the numbers are significantly lower than those pre-2003.
In 35 years, average house prices have increased by 1,295%
The lowest average house price recorded was £20,000 in 1980. This is £259,000 less than the most recently recorded average house price of 2015 – £279,000.
Year-on- year, there have been three periods of decline in average house prices
These took place in:
1990-1993: from £58,100 in 1989 down to £53,100 in 1993
2008-2009: from £179,000 in 2007 to £163,900 in 2009.
2011: from £175,300 in 2010 to £173,600 in 2011.
Younger homeowners are now more uncommon
32% of all 16-24 year-olds were homeowners in 1981. This increased to 36.1% in 1991.
Recent figures (of financial year end 2014) show this number has fallen to just 8.9% of 16-24 year-olds.
2015 has fewer new homes being built
The number of new homes was at its peak in the 1980s, with numbers exceeding 242,00 in 1988-1989.
The number of new homes being built each year declined, reaching its lowest point in 2012-2013 at 133,010. The final numbers, taken at financial year ending 2015 stand at 152,440.
Bindman & Co is owned by senior partner Les Bindman and is a proud supporter of Will Aid month.
Article sources
http://visual.ons.gov.uk/uk-perspectives-2016-housing-and-home-ownership-in-the-uk/
https://www.cml.org.uk/industry-data/key-uk-mortgage-facts/