Over the course of the recession and recovery, the average UK house price was helped out by the ever growing house prices in London contributing a positive influence on the data.  While other areas were struggling during the recession and with recovery, the London housing market was not feeling the impact.  With information from London Central Portfolio (LCP), it has been determined that without London’s data the average house price is only now coming upon the same level seen a decade ago.

Outside the capital, house prices are 16% lower than the level seen at the peak in 2007 prior to the economic crisis. 

Land Registry information for September revealed that the average house price for England and Wales reached £177,299.  Removing the London data leaves the average house price at only £133,538.  This represents a 16% lower value than what was seen in December 2007 and still lower than the average house price in 2004 which was £158,494.

LCP issued a statement that if house prices grow at the same current rate of 3.1% it will take five years to reach the level seen before the economic crisis.

Naomi Heaton, the CEO of London Central Portfolio, remarked, “Residential property prices in the UK move in cycles. Periods of growth are generally followed by periods of consolidation. We should expect to be entering a new growth cycle given prices are only at the same level as 10 years ago and are, without doubt, suppressed currently. They will inevitably start moving rapidly when sentiment improves and there is clarity over interest rates. This should be welcomed as a sign of economic confidence, not a harbinger of disaster.”