House prices climb by just 12.1% over the last decade

The latest analysis from Yopa, the full-service estate agents, has revealed that whilst the average UK house price has climbed by 51.8% over the past decade, this rate of growth falls to just 12.1% after adjusting for inflation.

The analysis comes from Yopa’s Housing Market Affordability Review of the last decade which looks at the UK housing market over the last decade, how the cost of homeownership has changed, how this has impacted affordability for buyers when taking earnings into account, and just what costs attribute to the high cost of moving home.

The first release from Yopa’s Housing Market Affordability Review of the last decade looks at house price growth across each segment of the market and how the cost of securing homeownership has changed when adjusting for inflation.

UK Average House Price Change

The research shows that, over the last decade, the average UK house price has increased by 51.8%, up from £176,561 in December 2014, to £268,087 in December 2024. However, after adjusting for inflation, the figures from Yopa show that this rate of growth actually sits at just 12.1%, so whilst the value of a home has increased, the rate of growth isn’t quite as eye-watering as topline house price statistics would suggest.

First-Time Buyer vs Owner Occupier

The research from Yopa also shows that the increase in the value of a first home has largely remained consistent with the same increase seen across the rest of the market.

In the last decade, first-time buyers have seen the price of a first home jump by 50.6%, or 11.2% once adjusting for inflation. At the same time, the value of homes purchased by former  owner occupiers has climbed by 51.7% since 2014, or 12% when adjusting for inflation.

This means that, a decade ago, the average first-time buyer was paying 30.8% less compared to existing homeowners, with this gap increasing to just 31.3% today.

New-Build vs Existing

New-build properties have seen by far the largest boost in value over the last 10 years, with the average price of a new-build increasing by 79% between December 2014 and December 2024. Even after adjusting for inflation, this rate of growth still sits at 33.1%.

In contrast, the average value of an existing property has increased by 51% over the last 10 years, or 12.3% once adjusted for inflation. As a result, the premium paid for a new-build property versus an existing one has increased from 23.7% to a huge 46.6% since 2014.