House Prices Rise 74% Over Two Decades: A Strong Market for Buyers and Sellers
House prices have risen 74% in 20 years, signalling strong value for buyers and sellers alike
New research has revealed encouraging long-term trends for the UK property market, with average house prices rising by 74% over the last 20 years — up from £113,900 in 2005 to £268,200 in 2024. While regional performance varies significantly, this overall growth highlights the continued resilience and appeal of residential property as a long-term investment.
Leading the way are London and the commuter belts of the South East and Eastern England. The capital has seen an impressive 119% rise in property values, while the South East and East both posted gains of 87%. Towns such as Elmbridge in Surrey and St Albans in Hertfordshire have seen prices more than double — a testament to their strong local economies, quality of life and excellent transport links.
Even with these increases, house price to earnings ratios in many regions have stayed broadly in line, suggesting that price growth has, in some areas, kept pace with income. In fact, affordability has improved in parts of the North. The North East, for example, saw house prices rise by just 39%, and its price-to-earnings ratio fell from 5.7 to 4 — the most significant improvement nationwide.
This long-term growth is welcome news for both sellers and buyers. For sellers, sustained price increases mean greater equity and strong potential returns on their investment. Meanwhile, buyers – particularly in regions where affordability has improved – may find greater opportunity to enter the market with confidence, knowing that property continues to offer reliable long-term value. The figures highlight the enduring strength of the UK housing market and its ability to deliver consistent growth across economic cycles.
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