UK house prices have nearly tripled since 2001, with the value of the average home soaring by a massive £163,700.
Homeowners who purchased a home before the global financial crisis saw a dip in its value between 2008 and 2012.
But these losses have been offset by strong house price growth since 2013, according to our latest research.
Keen to find out how much you could have made on your home? Head to our Instant Valuation tool to get an instant online estimate of what your property is worth…
And keep reading to discover which areas have seen the biggest house price rises over the last two decades.
Kensington & Chelsea in west London has been crowned the number one property hotspot for long-term house price growth.
Homes in the exclusive London borough have soared by nearly £740,000 in the past 20 years, making it the top-performing area for house price growth of any region since 2001.
It means that the average cost of a property in Kensington & Chelsea now stands at £1.1m, after prices rose by £380,200 since 2011 and £739,800 since 2001.
The commuter hotspots of St Albans and Elmbridge saw the strongest growth in the east of England and south east respectively, with property values climbing by more than £402,000 in both locations over the past two decades.
Trafford, an easy drive from Manchester, boasted the biggest house price rises in the north west. Meanwhile, rural areas took the top spot in other regions, such as Monmouthshire in Wales.
House prices in the south have risen the most during both the past 10 and 20 years, with southern regions occupying all of the top four spots.
Perhaps unsurprisingly, London led the way, with homes in the capital increasing in value by an average of £201,300 since 2011 and £337,400 since 2001.
To find out how house prices have changed in different areas of London over the last two decades, scroll further down our article.
At the other end of the scale, homes in Northern Ireland have seen the smallest price increases during the past 20 years, with gains of only £69,600.
And homes in the north east have increased in value the least since 2011, at an average of just £13,300.
Since the late nineties, price growth has been fuelled by falling credit costs, which has kept mortgage payments low as prices have risen, according to Howard Bettridge, Hampton’s regional director in the south east.
He explained: “Many households are also now making lower monthly mortgage payments than they were in real terms a couple of decades ago.
“This has been coupled with a house building hangover from the aftermath of the 2007 crash which has created a lack of supply, pushing prices up, while house building is only just getting back to pre-2007 levels.”
On top of these longer-term trends, the last 18 months have seen price growth fuelled by white collar workers’ lockdown savings, a stamp duty holiday, and homeowners reassessing how and where they live, Bettridge added.
“Prices in London and the south east spent much of the last decade surging away from the rest of the country. But this changed around three years ago, with value growth in the north outpacing the south.”
With UK house prices nearly tripling since 2001, many homeowners have seen significant rises in the value of their property since their purchase, according to Gráinne Gilmore, head of research at Zoopla.
However, long-term house price growth also means that buyers face forking out larger deposits to step onto, or move up the housing ladder.
If you’re in need of a helping hand, you could consider one of the government schemes aimed at assisting buyers, such as Help to Buy and Shared Ownership. And, for first-time buyers, there’s stamp duty relief available beyond the current stamp duty holiday.
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