UK house prices up by 79.4% in the last 10 years
Despite a global pandemic ravaging the world economy, UK house prices are up by 79.4% in the last 10 years, and across the OECD more broadly.
Research from money.co.uk analysed the average price of homes across OECD countries over the last decade.
It was revealed that the UK ranked 10th for property price increases.
Countries with the Greatest Property Price Increases
|Rank||Country||Average house price per sq metre (2010)||Average house price per sq metre (2020)||Price increase (%)||Difference in average annual wage 2010 to 2020 (%)||Average inflation rate 2010-20|
Israel has seen its average property prices go up the most over the last ten years, with average prices having increased by 345.7%. However, the average wage in the country has only gone up by 17.5%, in comparison to inflation rates over the decade which stood at just 0.92%.
Switzerland ranked second place with property prices increasing by 165.5% since 2021. Switzerland is well-known for having a high cost of living, which has clearly increased dramatically over the last ten years, compared to average wages which have only risen by 2.4%. Closely following Switzerland was Germany where property prices increased by 162%, whilst wages rose by 14.2%.
Deniz Igan, deputy chief of the macro-financial division in the IMF’s research department, said there was “strong house price growth over the past year in most parts of the northern hemisphere”.
Some countries are displaying signs of “housing fever”, according to Enrique Martínez-García, senior research economist at the Federal Reserve Bank of Dallas. He attributed this to fiscal and monetary stimulus during the pandemic.