UK Property Up 10-fold in a decade!!

O

one world

The period 1970-1980 saw UK property rise 10-fold, admittedly off a very low base.

All this despite the country being bailed out by the IMF in 1976 - the world's largest bailout at that time. Not to mention the bitter strikes that paralysed the country. Not to mention, again, stagflation and persistently high unemployment.

If you are more than 40 and enjoy a bit of nostalgia, check out this Youtube documentary; it has some pretty good music as well:

http://www.youtube.com/watch?v=wJZxiVLQYos

So yes, property does go up, even if it sometimes it stops for a breather. In the UK 1975 was a bad year, as was the period 1990-1995.

The GFC, in comparison, was nowhere as bad.

Enjoy! :)
 
I haven’t watched the clip, but my own experience of UK housing, being a UK expat, is this:-

We scrimped, saved and generally cut our throats to buy our first house in June 2000 in what was/is a 'nice' suburb. Not a fancy suburb, just a regular area with good school zone.

The house was 72k pounds. We felt sick and had sleepless nights as to how we would afford it, and we thought we'd missed the boat as prices had rocketed the previous year. The house we bought would have sold for 60k the previous year.

That first year was tough financially, but we hadn't bought at the top of the market, surprisingly to us at the end of year one the house was revalued at 80k pounds.

The next couple of years were still a struggle until our wages started creeping up a little.

By 2005 prices had gone CRAZY in our town, and in a lot of places in the UK. People could no longer afford to buy/trade up so the building trade was booming, Every second house had an extension or an attic conversion underway. We were the same, our house was revalued at around 150k pounds but the next house up that we would move to was way out of reach and not bigger/different enough to warrant the massive mortgage increase we’d need to move, so we extended and renovated instead.

Cut to 2007…we decided to move to Australia. The house was valued at 195k pounds. So, from the initial purchase of 72k plus about 20k in renovations the house had more than doubled in 7 years.

We left the UK in September 2007 and rented the house out for 700 pounds per month.

Fast forward to now….

There are houses in our road, similar to ours that have been on the market for over two years, at asking prices around the 150-160k pounds marks. Our house is now valued at around 160k, assuming there would be anyone around to buy it, as houses in our old area are taking at least a year to sell on average. It now rents for 540 pound per month.

So, it doubled in 7 years and then receded about 20-25% in the last 6.

That’s a fairly typical story for most of my UK friends from 2000 to today. A few of my friends that had traded up to bigger houses around 2006 ish faired a little better, their places have held their own a bit more and are worth around what they paid for them 7 years ago.

We’re talking Northeast England here by the way, not big city/London type areas.
 
Same for other parts of England no doubt Propogate

My partner has a house near Birmingham but out of the city, not costing us anything as its positively geared but I understand prices have not gone anywhere but down.

I go there a lot and I really don't get a good vibe when talking to people about employment and way of life in general. Everyone seems to be struggling, at least out of the big cities.
 
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