UK House Prices 2000–2020

Between the years of 2000–2020, the average UK house price has increased from about £89,000 to £267,000 — around a 300% increase. I will be looking at the cause of this, and the fluctuations in between.

As shown in the graph above, there isn’t really a steady pattern of house prices in the UK over the last 20 years and there are frequent fluctuations, the main one being during the financial crisis of 2008. There was an inflation in house prices between 2000–2008, however the increase was not going at the same rate like some would possibly expect. (Also shown in the graph below).

As shown, the nominal house price in the UK, between 2000–2008 increased from around £80,000 to about £180,000, when the economic crisis hit. In 2008, house prices plummeted catastrophically, as shown in the two graphs below:

Since 2008 however, house prices have been increasing although at a decreasing rate — this is disinflation.

Since Covid however, house prices have significantly increased as shown below: