Latest numbers released by the Office for National Statistics UK show that it has become more expensive than ever before to buy a house in the UK.The figures also show that the growing house price gap between the UK regions has reached its highest level.
The average house prices for the UK collected by ONS start in 1986 and end in 2013. In 1986 an average house in the UK was worth £36,276. From 1986 the house prices rise every year only dropping very slightly by very small amounts.
CHART !!! just show averages
Where as the average price was £54,863 in London in the same year. In the North East of the UK the average price was £23,591.
Only Major Price Drop in 2008/2009
The only time the average UK and London house prices are falling significantly is right after 2008 when the global financial crisis just broke out and house prices all over the globe fell rapidly. But still the effects of the 2008 crisis can not be felt as bad as they were felt in other regions of the world like in spain for instance.
London House Prices rising faster than anywhere else in the UK
Looking at average UK prices show a rise in every year except for 2009 since 1986 till 2013. Interestingly the numbers of the average prices of UK and North East UK are not rising as fast as the London numbers. The London house prices jump by almost 10,000 pounds every year at the very beginning of the records. But after that in the late 90s they double or even triple the amount of the year before.
At the end of the records the average London house price is almost 8 times higher than it was at the beginning of the records in 1986. That is a tremendous rise compared to other UK regions.
So it gets more and more expensive to live in London. But in the North East of UK the numbers are rising comparatively slower and there are no such big jumps from one year to the other.
Disparity is growing and reaching its highest level ever
The numbers of ONS UK show that there always has been a disparity in house prices throughout the UK. But they have never been this high in the past. So the trend is going to higher overall prices and there seems to be no improvement in sight.