Over the past 20 years, one in five British homeowners have seen the value of their property rise by 20% or more.
And new analysis from estate agent Savills reveals that, nationwide, nominal house prices have nearly doubled over two decades, climbing by 95%.
However, when adjusting for inflation, the average real increase dwindles to under 9%, underscoring economic pressures such as wage stagnation, limiting buyer affordability.
And the data reveals that, unsurprisingly, parts of London have recorded some of the most substantial price increases.
But it’s another major city that has taken the top spot for inflation-adjusted growth.
Two Greater Manchester constituencies, Blackley and Middleton South, stand out as the strongest performers, with average house prices rising by an impressive 71% since 2005. Properties there now command an average value close to £219,000.
Other locales have seen far more modest changes over the same period.
Lucian Cook, head of residential research at Savills, notes that stagnant wages continue to cap the ability of many to afford their homes.
He said: ‘The areas that have seen the strongest real house price growth over the past 20 years are dominated by London locations, which experienced robust growth up until 2015. However, growth has reached an affordability ceiling over the past decade, with average incomes unable to keep pace.
‘Blackley and Middleton South sit in complete contrast. Having seen lower than average price growth in the 20 years to 2015, it was well placed to capitalise on the UK entering the second half of its housing market cycle and the resurgence of Manchester in particular.’
Meanwhile, London’s housing market, once the engine of UK price growth, particularly before 2015, has cooled considerably in recent years.
Prime central areas, including Kensington and Bayswater, have still achieved 67% real growth since 2005, but overall, 44 of London’s 75 parliamentary constituencies have seen inflation-adjusted house price falls during the last decade.
Shifts in market affordability and buyer preferences, including rising living costs and demand for more space, have contributed to this trend.
Despite that, gentrifying neighbourhoods like Hackney and Shoreditch have maintained relatively strong growth until recently.
In contrast, parts of Greater Manchester, including Blackley and Middleton South as well as Gorton and Denton, have emerged as new growth hotspots post-2015.
Gorton and Denton recorded 49% inflation-adjusted rises, with average values around £234,000.
Factors such as urban regeneration and comparatively affordable prices relative to London attract buyers to these northern areas, reflecting a broader relocation trend benefiting regional urban centres.
However, the housing market disparities are stark, with many regions facing stagnant or declining property values after inflation.
Significant real-term falls have affected extensive areas in the North East, Yorkshire and the Humber, Wales, and some Scottish constituencies.
Particularly hard-hit is Blackpool South, where values dropped by 25%, though a minor recovery occurred recently.
Aberdeen South’s 18% decline ties closely to challenges in the oil industry, illustrating how local economic conditions shape housing demand.
Previous research from Savills indicates that the average UK house price could grow by around £80,000 between 2025 and 2030, marking a significant uptick from recent years.
The strongest increases are anticipated across northern England, Wales, and Scotland, with regions such as Yorkshire and The Humber, North East England, the North West, as well as Wales and Scotland potentially seeing rises exceeding 27% over the five-year period.
Conversely, London and the South East are forecast to experience more subdued price growth, with estimates suggesting increases of less than 20% by 2030.
House prices in the North West are predicted to narrow their price differential with the UK average, reducing the gap to approximately 15%, a notable decline from nearly 30% in 2020.
London prices, while still above average, are expected to see their premium fall to about 33%, down from 70% in 2017.
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