How much have house prices gone up since 2021?

[sumesest]

I’ve found a beautiful house online; they are marketing it for OIEO £800k. From what I can see, all they’ve done since moving in during 2021 is redecorated (paint), changed flooring to herringbone, swapped the kitchen worktops from wood to Quartz, and added an outdoor kitchen (which isn’t included in the sale anyway). They paid £630k for the house in 2021.

As I said, it’s a really gorgeous home, but am I wrong for thinking they are batshit wanting a 33% increase over what they paid?! Or am I out of touch? I was under the impression that prices had gone up max 15% in the last 5 years, at a push.

Do people really expect house prices to be the same as someone else paid ten years ago if no improvements have been done?

Does anyone factor inflation in?

Does buyers' income grow in line with inflation? If not, it means they have less disposable income because of inflation, so actually can afford less, not more.
And after that sinks in, factor mortgage that doubled or tripled.
So house prices can grow as much as they like, (regular working) people will not be able to afford them.

@MrsPapillon and regarding improvements - they increase likelihood of the property being sold, but don't always increase the price for the exact amount spent on them.

Do you have the numbers for 2023, and 2026 so far?

Depends entirely on location and home type. There are many (but a minority) places where you can buy a home cheaper than 10 years ago. When inflation is factored in they will have lost more than 25% of their real value.

That"s right, but house prices are dictated by the houses that actually sell, the market is "made on the margins" as they say, so values are unlikely to be growing now.

Does anyone have any predictions based on Andy Burnham coming in and how that could affect house prices. If we get a little economic boost from it? Even if only short term.
I’ve heard he might bring in big increases to CGT which will possibly stop landlords selling the properties they don’t want any more while they wait for the policy to be reversed, which has been a thing adding to the numbers of properties for sale in recent times since the changes to renting laws?

I imagine if his version of levelling up the country works then house prices in the north of England near Manchester the additional seat of government would rise. The massive plans for gov social housing building even if successful would take years and presumably be focused outside London and the SE.so the main housing effect on lowering prices might be outside London and the SE. Anything else?

i’m concerned by how permanent a lot of these global economic factors sound in regards to affordability of credit. High prices for materials for home building and structural improvements. We What’s an ordinary person who needs to move house to do? The housing stock in general seems likely to become increasingly dilapidated.

sounds like UK buyers have no chance unless minted then that tiny minority have free rein and its totally their market as buyers.

Sellers (including those who have made loads of improvements) have no chance of selling at all unless can afford to make a big loss, unless they bought years ago (not around any of the price and activity peaks that have been mentioned).

so now might be good market for a few, rich first time buyers then. Or a few rich landlords or second home acquirers to buy.

But if you have something you actually live in to sell and also want to buy to live in it yourself, you are more likely have to get into a chain it sounds like these will be even more unstable as transactions will be ever slower and slower with way more pissing about as buyers are far fewer, and then much more picky if they are interested.

it’s depressing. Life has to go on despite the market conditions and al of this stuff massively dictates how we live our lives.

The bond market will dictate house prices, the "10 Year Yield" basically runs mortgage debt prices, with Japan talking about raising rates as well there is a lot of upward pressure on debt costs now.

https://www.ig.com/uk/trading-strategies/uk-gilt-yields-explained-what-burnham-s-new-chancellor-means-for-260721

https://www.msn.com/en-us/money/markets/bond-market-punishes-burnham-s-fiscal-flexibility-as-uk-yields-hit-g7-high/ar-AA28nUXO

Just read this in the newspaper:

Few homeowners enjoy regular hikes in value
Only around one in seven homes has risen in value consistently since 2022, says a property website.

Zoopla estimated that just 14% of UK homes – just over four million properties – had increased in value annually each June up to this year.

Richard Donnell, executive director at Zoopla, said: “Housing markets across Northern Ireland, the North and Scotland have seen homeowners keep building equity in their home because the local housing market was less exposed to the affordability pressures that higher mortgage rates bring.”

Zoopla are a VI, they are not giving an accurate picture IMO, wages are also lower in these regions, lower than London, eventually all bubbles pop.