this post was submitted on 07 Sep 2023

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Average price of a home falls by £14,000 in a year (www.bbc.co.uk)

submitted 2 years ago by [email protected] to c/[email protected]

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[–] [email protected] 17 points 2 years ago (5 children)

Although for context, as of June this year

UK average house prices have increased by 24.2% (£55,880) since the start of the COVID-19 pandemic.

https://www.twindig.com/market-views/latest-average-uk-regional-house-prices

[–] [email protected] 0 points 2 years ago* (last edited 2 years ago) (2 children)

But that's nominal prices. Inflation has been severe since the COVID-19 pandemic started. Can't disregard that.

https://www.in2013dollars.com/uk/inflation/2020?amount=100

£100 in 2020 is equivalent in purchasing power to about £125.60 today, an increase of £25.60 over 3 years. The pound had an average inflation rate of 7.89% per year between 2020 and today, producing a cumulative price increase of 25.60%.

That makes the nominal increase a decrease in real terms.

[–] [email protected] 5 points 2 years ago (1 children)

Average wages haven't gone up by 25% since 2020, and I doubt people have been getting 25% returns on cash held over that period.

Housing affordability is lower than at any time pre-2020.

https://www.ons.gov.uk/peoplepopulationandcommunity/housing/bulletins/housingaffordabilityinenglandandwales/2022

[–] [email protected] 2 points 2 years ago

That may be true, but affordability is a different matter from whether house prices are rising.

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