House prices increase fourfold in half a century

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by Kay Murchie

A study by the Halifax has revealed that owning a home is less affordable than it was 50 years ago.

The lender, which was taken over by Lloyds Banking Group at the height of the financial crisis in autumn 2008, considered the state of the market in the period from 1959 to 2009.

While the quality of homes has improved, they are less affordable than they were in 1959 and have grown by 2.7% a year (allowing for inflation), said the Halifax.

Huse prices increased the most over the last 10 years but there have been four major house price booms during the 50-year period. These were: 1971-73, 1977-80, 1985-89, and 1998-2007.

The study also found that since 1959, London experienced the biggest rise in prices, while the smallest increase was in Scotland.

The Halifax’s research also found that home-ownership has grown in the period - rising from 43% in 1961 to 68% in 2008 - partly due to the Right to Buy scheme which then Prime Minister, Margaret Thatcher, introduced.

The scheme, introduced in the 1980s, meant tenants had the right to buy their council house at a discounted value and hundreds of thousands of homes were sold as part of the scheme.