Property Investment Statistics in the UK

Property Investment Statistics in the UK

After researching government data on property prices across the UK over the past 10 years, TIC Finance has put together some key advice on the areas with the highest average growth rates and the most stable property markets to inform your investments.

Counties with the highest growth rate 2010-2020

Region/Country name County/UA name Year to Jun 2020 Average % change
South West Isles of Scilly 367,500 9.63%
South East Slough 324,863 6.40%
East of England Thurrock 285,000 5.95%
South East Medway 251,250 5.79%
East of England Central Bedfordshire 311,250 5.70%
South East Milton Keynes 285,000 5.68%
East of England Southend-on-Sea 292,500 5.63%
East of England Luton 247,500 5.53%
South West Bristol, City of 273,500 5.36%
East of England Hertfordshire 395,000 5.25%
East of England Bedford 282,499 5.23%
South East Brighton and Hove 360,000 5.18%
East of England Essex 313,748 5.13%
South East Kent 298,998 5.11%
South East Wokingham 420,000 5.07%
East of England Cambridgeshire 300,750 5.06%
South East Surrey 440,500 4.86%
South East Reading 302,500 4.85%
South East Buckinghamshire 393,625 4.72%
South East Windsor and Maidenhead 480,750 4.72%

Despite being the area with the highest average growth rate over 10 years, the Isles of Scilly also has one of the least stable property markets, with prices on the isles rocketing up in some periods but falling in 5 out of the 10 years.

Wales and the north of England is also completely missing from the top 20 areas for growth, with the South East and East of England dominating in terms of average price growth. However, last year, 3 areas of the North West and 6 areas of Wales saw the highest levels of growth in the entire country.

Counties with the highest rate of growth 2019-2020

Region/Country name County/UA name Year to Jun 2020 % change 2019-20
Wales Merthyr Tydfil 113,500 19.47%
East of England Peterborough 205,625 7.67%
North West Blackpool 118,000 6.37%
Wales Pembrokeshire 180,000 5.88%
Wales Monmouthshire 259,998 5.24%
Wales Swansea 154,500 5.10%
Wales Bridgend 159,486 4.93%
North West Halton 150,000 4.90%
Wales Isle of Anglesey 177,500 4.89%
North West Cheshire West and Chester 206,998 4.81%

Counties with the most stable house prices 2010-2020

By analysing average house prices over the past 10 years, TIC Finance has determined the most stable counties in the UK.

Region/Country County Times Prices Fell (10 years) Average Yearly % Change Current Average Price (Jun 2020)
East of England Southend-on-Sea 0 5.63% 292,500
South West South Gloucestershire 0 4.69% 279,000
South East Oxfordshire 0 4.56% 349,998
Wales Newport 0 4.06% 178,500
South East Portsmouth 0 3.72% 215,000
South East Slough 1 6.40% 324,863
South East Medway 1 5.79% 251,250
East of England Luton 1 5.53% 247,500
South West Bristol, City of 1 5.36% 273,500
East of England Bedford 1 5.23% 282,499
South East Brighton and Hove 1 5.18% 360,000
East of England Essex 1 5.13% 313,748
South East Kent 1 5.11% 298,998
South East Wokingham 1 5.07% 420,000
East of England Cambridgeshire 1 5.06% 300,750
South East Surrey 1 4.86% 440,500
South East Buckinghamshire 1 4.72% 393,625
South East Windsor and Maidenhead 1 4.72% 480,750
East of England Peterborough 1 4.61% 205,625
South East West Sussex 1 4.50% 326,500

Buying in counties where house prices have fallen the least often in the last 10 years may provide additional stability to your investment. In addition, reviewing the average yearly price change shows where the property market may perform best.

Counties with the least stable house prices 2010-2020

Region/Country County Times Prices Fell (10 years) Average Yearly % Change Current Average Price (Jun 2020)
South East Southampton 3 3.60% 219,500
West Midlands Telford and Wrekin 3 2.74% 175,500
North West Blackburn with Darwen 3 2.47% 122,488
Wales Rhondda Cynon Taf 3 2.27% 115,000
Wales Isle of Anglesey 3 2.16% 177,500
Wales Neath Port Talbot 3 2.07% 120,500
Wales Wrexham 3 1.93% 153,500
Wales Carmarthenshire 3 1.73% 143,750
North East Northumberland 3 1.46% 165,475
Yorkshire and The Humber North Lincolnshire 3 1.46% 142,750
Wales Swansea 3 1.45% 154,500
North East Middlesbrough 3 1.28% 135,000
Wales Powys 3 1.17% 180,000
Wales Merthyr Tydfil 4 3.15% 113,500
Wales Gwynedd 4 1.67% 158,500
Wales Pembrokeshire 4 1.61% 180,000
North East Darlington 4 1.25% 142,850
Wales Ceredigion 4 1.20% 185,375
North West Blackpool 4 0.71% 118,000
South West Isles of Scilly 5 9.63% 367,500

Wales has arguably the least stable housing market, with a number of Welsh counties making the top 20 least stable for house price drops over the last 10 years.

Tips from a property expert

Paran Singh, a financial advisor at TIC Finance provides some advice on avoiding negative equity:

  • Save as much deposit as you can – If you are able to save more than 5% of your mortgage but will struggle to build up enough savings for 10%, consider paying a higher deposit to reduce your overall debt owed.
  • Stay put – Purchasing a house at this time with a high LTV mortgage will be a much safer option if you are planning to stay in the same place for a longer period of time. Unexpected circumstances aside, thinking long-term could mean you weather any house price changes that jeopardise your equity.
  • Only overpay your mortgage if you can afford it – High LTV mortgages generally have higher repayment rates so overpaying to improve your equity may not be possible. Only consider this option if you’re in a comfortable place financially.

Tips from a mortgage expert

Lloyd Edwards, Mortgage adviser from Bentley Holmes:

  1. A 95% mortgage is a good idea if it enables someone to get their foot on the property ladder and is the maximum amount of deposit they have. There is also the Help to Buy scheme from the government which supports this type of mortgage currently.
  2. Buyers should be aware that interest rates with this level of deposit can be higher, credit scores are scrutinised more by the lenders and lenders will also lend less at this level than with a higher deposit.
  3. It is worth waiting until April when the new government 5% deposit scheme is launched to see what more options will be available.

Sources

House price data are taken from the ONS.