The research revealed that the average UK property price had risen from £62,453 in 1996, to £179,425 in 2006, a rise of 187 per cent.
Regionally, London property prices escalated the most, at 240 per cent, with house prices in Scotland reporting the lowest increase, of 110 per cent. London, Northern Ireland and the South West all reported a tripling in the average house price since 1996, with London and the South East both reporting house price increases of over 150 per cent.
Commenting on the findings, Tim Crawford, group economist at Halifax, said: “The premium for living in London has increased over the last 10 years as the average property price in the capital has more than tripled. The South West has emerged as a highly sought after destination, led by Cornwall.
“The housing market in Northern Ireland has seen well above average house price growth, led by Newry and Antrim, two of the five top performing towns in the UK since 1996.”
The report revealed that Surrey retained the title as the most expensive county, with Gerrards Cross taking the title of highest priced town in the UK, with average house prices of £712,828, compared to £205,968 in 1996.
Alan Lakey, senior partner at Highclere Financial Services, admitted the current level of growth was unsustainable. He said: “I think there could be a downturn in the market next year, with rates rising up to 5.5 per cent. I think this could have a cooling affect on the market and there is a lot of potential for a downturn in the market.”
Halifax admitted that house prices were likely to continue to grow, but at a more stable rate over the next decade.
