UK homes gain £55,800 as values

rise 20% in 5 years

The latest research from Zoopla has reported what has really happened to house prices
since the pandemic, and you might have made more on your home than you thought.
The average UK homeowner has seen 20% added to their home’s value since 2020, which
works out to be an average gain of £55,800.
For some, the growth is even greater as 1 million homes are now worth at least 50% more,
with an average gain of an impressive £117,400.
In fact, 8 in 10 homes (24 million across the UK) have risen in value by at least 5%, and are
now worth £60,800 more in just 5 years.

How have property values changed in each region?

Zoopla have broken down how the added value works out in pounds and pence across the
UK and it’s not bad reading for homeowners.

The home value winners: Northern England and Wales

More than half of the UK homes with 50%+ value gains are in the North West, Yorkshire and
the Humber, and Wales.

In the last five years, homes with 50%+ value growth saw average gains of:

£90,700 in Wales
£86,200 in Yorkshire and the Humber
£77,100 in the North West

The level of house price growth in these areas is down to a combination of factors. The
pandemic prompted lifestyle changes and new buyer requirements, boosting interest in
previously overlooked areas.

At the same time, huge rental growth in cities and the late-2022 spike in mortgage rates has
encouraged people to prioritise affordability and buy in lower-value areas.

This means that the most affordable areas have seen above-average buyer interest, pushing
house prices up.

Growth hotspot: The South Wales Valleys

The Valleys area of South Wales has become a very sought-after spot in the last five years,
driven by its unique combination of excellent value for money and close proximity to Cardiff.

Growth hotspot: The North West

Urban areas in the North West have seen impressive house price growth since 2020,
particularly in Liverpool, Manchester and the surrounding areas.

The home value losers: London and the South of England

There’s a chance your home has lost value since 2020 if you live in the South of England,
but the good news is that value losses are pretty limited.

In fact, most southern homes have seen small value increases since the pandemic,
particularly as the London ‘virtual’ commuter belt has expanded, they’re just not as high or
widespread as in Wales and the North.

London: Property values fall in inner boroughs

The value losses have mainly happened in London, where 13% of homes have lost 5% or
more at an average of £34,000.

Westminster and Kensington & Chelsea are the worst off, with almost half of all homes now
valued below their June 2020 estimates.

On the flip side, the previous exceptional value growth in these areas will offset much of
these house price losses for many homeowners.

London’s housing market has faced many challenges in recent years, with high house prices
and mortgage rates impacting first-time buyer demand and rate and tax changes
discouraging landlord investment.

South of England: Small gains work out to big cash boost

The South of England has seen modest value growth, with 51% of southern homes gaining
up to 20% in value at an average of £62,000.

The lower growth is a result of house values already being higher in the south, along with
high mortgage rates impacting demand and keeping values steady.

The homes that gained more value tend to be located in desirable coastal spots and areas of
natural beauty and although the percentage increase is lower, high house prices equate to a
huge cash boost in the South East, with homes now worth £62,000 more than 5 years ago
on average.

The expert’s advice: “It’s critical to understand your local market dynamics when
moving”

Richard Donnell, Executive Director at Zoopla, reflects on the research, adding some advice
for those thinking about moving.

“Our latest analysis clearly shows there is no single housing market and that house price
trends vary widely across the UK.

“1 million UK homes have seen their value increase by 50% or more over the last 5 years as
higher mortgage rates and rising rents encourage home buyers to seek out value for money
in localised markets across northern England and Wales.

“Home value growth has been weaker across southern England and particularly in London.
A combination of high prices and higher mortgage rates have reduced buying power and this
has been reflected in flat prices and modest price falls in inner London.

“The UK currently has the most homes for sale in 7 years. It’s critically important that serious
sellers fully understand the local market dynamics impacting the value of their home and
seek the advice of agents on where to set their asking price in order to achieve a sale.”

What does this mean for you?

Whether you’ve seen strong growth or modest gains, now is a great time to understand what
your home is really worth, especially with more properties on the market than at any time in
the last dozen years.

Local knowledge is key. Every street, postcode and property type performs differently, so
don’t rely on national headlines alone.

If you’re considering selling or you’re just curious to know how the value of your home has
changed, we’re here to give you an accurate insight on the local market.