Since 2001, house prices in the UK have risen 90 per cent, compared with a 40 per cent increase for the Eurozone as a whole over the same period. Spain is the only country with higher house price growth than the UK in the past five years, with an increase of 100 per cent.
In the past year, Belgium experienced the largest rise in house prices of 18 per cent, followed by France at 15 per cent and Spain at 14 per cent. The UK had the fourth-largest increase of 13 per cent.
Of the 12 Eurozone members included in this analysis, Germany is the only country to have experienced a fall in house prices, with a fall of 5 per cent over the past five years.
House price growth in UK and Eurozone
Country / One year / Two years / Five years
Spain / 14 per cent / 57 per cent / 100 per cent
UK / 13 per cent / 30 per cent / 90 per cent
France / 15 per cent / 48 per cent / 73 per cent
Ireland / 12 per cent / 33 per cent / 71 per cent
Belgium / 18 per cent / 39 per cent / 60 per cent
Luxembourg / 0 per cent / 24 per cent / 58 per cent
Greece / 11 per cent / 20 per cent / 56 per cent
Eurozone / 8 per cent / 24 per cent / 40 per cent
Netherlands / 5 per cent / 15 per cent / 38 per cent
Finland / 6 per cent / 21 per cent / 29 per cent
Portugal / 0 per cent / 2 per cent / 7 per cent
Austria / 5 per cent / 3 per cent / 6 per cent
Germany / -2 per cent / -4 per cent / -5 per cent
Sources: Halifax and European Central Bank
Despite rising faster than the UK over the past five years, house prices in Spain are lower. The average price in Spain stood at £150,200 at the end of 2006, compared with an average of £187,100 in the UK. The average house price in Ireland (£209,300) and the Netherlands (£190,900) is higher than in the UK.
Average house prices in selected countries (£)
Country / 2005 / 2006
Ireland / £190,700 / £209,300
Netherlands / £185,700 / £190,900
UK / £170,100 / £187,100
Spain / £134,500 / £150,200
France / £105,600 / £119,300
Belgium / £101,200 / £117,600
Finland / £88,600 / £92,300
Sources: Halifax and European Central Bank
The owner-occupation rate in the UK is currently around 70 per cent. Spain has a significantly higher owner-occupation rate of 82 per cent, whereas the Netherlands has a lower owner-occupation rate of 55 per cent. In Germany, the rate is even lower at 45 per cent.
Outside the eurozone, house price growth in the UK has outperformed Australia, Canada and the United States over the past one, two and five years. The US is the only one of these countries to have recorded a fall in house prices, with a 1.3 per cent decline in the past year.
Along with faster growth, the UK also has a higher average house price than Australia, Canada and the US.
House prices in UK, Australia, Canada and US Q1 2007
Average price (£) / One-year change / Two-year change / Five-year change
UK / £192,300 / 13 per cent / 30 per cent / 90 per cent
Australia / £164,200 / 9 per cent / 13 per cent / 54 per cent
Canada / £132,200 / 10 per cent / 24 per cent / 36 per cent
US / £132,600 / -1.3 per cent / 18 per cent / 36 per cent
Sources: Halifax and Datastream
UK owner-occupation is the same as in Australia and slightly higher than the US (69 per cent) and Canada (66 per cent).
Tim Crawford, group economist at Halifax, said: "UK house prices have risen more rapidly than in its Eurozone neighbours over the past five years. House price growth, however, has slowed in the past couple of years compared with the likes of Belgium and France recording bigger increases. Two of the largest economies surveyed – the US and Germany – are the only ones to have seen a fall in house prices."
