Prices of pre-1919 houses have started to re­turn to earth

Yorkshire Post - Property - - PROPERTY - Sharon Dale

HOUSES built be­fore 1919 have seen the largest surge in prices over the past 25 years, ac­cord­ing to re­search from Halifax.

Prop­er­ties built be­fore the end of the First World War have risen by an av­er­age of 461 per cent – equiv­a­lent to £516 per month – from £33,619 in 1986 to £188,473 in 2011. This is sig­nif­i­cantly more than the av­er­age house price in­crease for all prop­er­ties of 357 per cent or £449 per month.

Prop­er­ties from the Vic­to­rian era, famed for their high ceil­ings and fash­ion­able de­tail­ing, the Ed­war­dian pe­riod, with their dec­o­ra­tive cor­nices, and the Ge­or­gian epoch all con­trib­ute to this surge in price for pre-1919 homes.

Martin El­lis, Halifax hous­ing econ­o­mist, says: “The age of a prop­erty of­ten de­ter­mines its size, its style and lo­ca­tion.

“Prop­er­ties from the Vic­to­rian or Ed­war­dian era tend to be in higher de­mand: there are fewer of them, they are of­ten larger, sit­u­ated in de­sir­able lo­ca­tions and have a pop­u­lar style. It’s easy to see why pre-1919 homes wit­nessed such a dra­matic in­crease over the past 25 years”.

Prop­er­ties built since 1960 have seen the next largest rise in house prices, in­creas­ing over the last 25 years by 348 per cent to £169,168. On the other side of the scale, how­ever, prop­er­ties built be­tween the end of the Sec­ond World War and 1960 – a pe­riod, which saw the ad­vent of the high rise and of more Euro­pean open-plan homes, have seen the small­est in­crease in prices with an av­er­age rise of 249 per cent over the pe­riod.

Martin El­lis says: “Modern prop­er­ties, built since 1960, have their own pull, which is some­times linked to con­ve­nience, whether it is lo­ca­tion on a com­muter belt or the fact lit­tle ex­tra work is needed. Prop­er­ties built be­tween the end of the Sec­ond World War and 1960, on the other hand, in­clude many smaller prop­er­ties, which will con­trib­ute to the smaller rise in price over the last 25 years.”

How­ever, a sig­nif­i­cant re­ver­sal has oc­curred since the hous­ing down­turn in 2007: while houses built be­fore 1919 have seen the largest price growth over the past 25 years, they have per­formed the least well since 2007 with av­er­age prices con­tract­ing by 30 per cent. Prop­erty val­ues for those built be­tween 1919 and 1945 and 1946 to 1960 have de­clined by a quar­ter in the same pe­riod, while the av­er­age price of houses built since 1960 has fallen the least since 2007 (19 per cent).

Martin El­lis con­cludes: “There are many in­tri­cate rea­sons for the re­ver­sal in for­tunes for pre-1919 homes since 2007, of course. We may sug­gest, how­ever, that de­mand for larger prop­er­ties has dipped more than for smaller prop­er­ties in the con­text of more con­strain­ing eco­nomic con­di­tions since 2007.”

Other key find­ings: Houses built be­fore 1919 are, on av­er­age, the most ex­pen­sive with an av­er­age price of £188,473. The least ex­pen­sive are those built over the pe­riod 1946 to 1960 with an av­er­age price of £144,988.

Over the last 10 years, av­er­age prices have risen most for pre-1919 prop­er­ties and those con­structed af­ter 1960, with both in­creas­ing by about 60 per cent. Prop­er­ties built be­tween 1946 and 1960, which saw the small­est gains over the last quar­ter of a cen­tury, have also seen the small­est gains in the past 10 years with an av­er­age rise of 48 per cent.

The most ex­pen­sive prop­er­ties across all age bands are in Greater Lon­don. Prop­er­ties built be­fore 1919 have an av­er­age price of just un­der £361,000 in the cap­i­tal. Over the last 25 years, the largest av­er­age price in­creases have been in Scot­land (528 per cent), Greater Lon­don (521 per cent) and York­shire and the Hum­ber (520 per cent). The small­est in­crease has been in the South East (408 per cent)

1946-1960: The largest growth rate for houses built be­tween 1946 and 1960 was in York­shire and the Hum­ber (306 per cent) and the low­est was in Scot­land (201 per cent).

York­shire saw the largest in­creases in av­er­age price, 410 per cent, for prop­er­ties built since 1960.

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