Britain sees 50 per cent rise in house prices over decade

THE UK is among the top performing world housing markets after a 50 per cent rise in house prices in real terms over the last decade.

The UK is among the top performing world housing markets after a 50 per cent rise in house prices in real terms over the last decade. The biggest increase since 2001 has been in India, with an increase of 284 per cent (once inflation is taken into account), according to the Lloyds TSB global housing market review, published today.

The Indian house price rise, annualising at 14 per cent, is almost six times the rise in real UK house prices and ten times the 23 per cent increase in the the Euro area.

Four of the top six performing housing markets since 2001 are found in emerging markets economies, with Russia (209 per cent rise) second to India, followed by South Africa, where prices have gone up by 161 per cent over the last ten years.

Six countries posted negative house price growth over the period, including Ireland (23 per cent lower) and Germany, where prices have fallen 17 per cent in real terms.

Suren Thiru, economist at Lloyds TSB International, said: “Looking forward, the outlook for house prices globally is likely to be determined in part by the pace at which the global economic recovery continues, the events in the Eurozone as well as the economic prospects of individual countries.”