Homeowners in the UK are reaping the benefits of soaring property prices, with new analysis showing a substantial increase in the value of properties purchased in the last 20 years. According to data from Zoopla, around 60% of homeowners who bought their properties within the past two decades have seen their value increase by an average of £80,000, as house prices have surged by 78% during this period.
Interestingly, it’s not just those who have owned their properties for decades that are benefiting from significant price appreciation. Nearly half (48%) of homes purchased in the last decade have witnessed their value rise by more than £65,000, according to Zoopla.
The analysis also highlighted that properties in southern England, particularly in areas like the Cotswolds and Richmond-upon-Thames, have experienced notable gains over the past 20 years. Approximately 80% of homes in these regions have seen their value increase by more than £65,000 since their last purchase.
Izabella Lubowiecka, a senior property researcher at Zoopla, pointed out that many UK homeowners are now sitting on substantial gains in property value, despite recent fluctuations in house prices. While London has seen either a decline or modest growth in house prices, areas like Richmond have performed exceptionally well. Similarly, in the North West, places like Trafford have experienced significant growth, partly due to their proximity to Manchester and appeal to families moving out of the city.
These capital gains are providing essential financial support for many homeowners looking to make their next move. The positive trend in property prices comes at a time when concerns about wealth inequality in the UK are on the rise. A recent report from the Fairness Foundation revealed that the wealth gap between the richest and poorest in the UK has increased by nearly 50% in less than a decade.
With three in four voters expressing concerns about wealth inequality, there is growing pressure on political leaders like Sir Keir Starmer to address these issues. Polling data from Focaldata in July showed that the majority of people are worried about the impacts of wealth inequality on various aspects of life, including crime, the cost of living, housing, and health.
As homeowners continue to benefit from rising property prices, the debate around wealth inequality in the UK is likely to intensify. It remains to be seen how policymakers will respond to these concerns and work towards creating a more equitable society for all.
