Average UK house prices increased by over 40% since 2009

Average UK house prices increased by over 40% since 2009

House prices in the UK have increased by over 40% and almost £60,000 over the last eight years since interest rates first hit historic lows.

The Bank of England lowered interest rates to 0.5% in March 2009 and property prices have increased by 41.2% since. In August 2016, interest rates were lowered once again, to 0.25%.

The Queen’s Speech: No more letting fees!

Online estate agent HouseSimple had a look at the figures in times where there’s a chance that rates could increase again. Three members of the Bank of England’s Monetary Policy Committee (MPC) voiced their opinion last week that the rates should rise again due to a steady rise in inflation. They were outvoted this time around, however this indicates the direction the MPC may be heading towards.

Since rates were cut to 0.5% in 2009 Cambridge has seen the biggest house price rise, at a rate of 96.7% (from £224,469 to £441,527). London is following closely with an increase of 90.8% (from £278,186 to £530,751) as well as Slough at 90.1% (from £160,774 to £305,649).

In an analysis of 100 towns and cities across the country, figures have revealed that home owners in the South East have benefited the most from the increase as seven out of ten of the biggest property price increases are located in the region.

For investors, however, the area turned out to become the least lucrative part of the country to invest in.

Demand from Investors for UK Property is on the rise, RICS says

Alex Gosling, chief executive office at HouseSimple, commented the findings:

“There is no evidence to suggest that property prices are about to plummet, but home owners and home buyers do need to plan ahead, and make sure they can cover the impact of interest rate rises on their monthly mortgage payments.”

Many home owners will have never seen an interest rate rise, and may believe rates will never rise. But they will eventually, and when they do, we could see rates rise by 1% to 2% quite quickly. With many households already feeling the strain of higher day to day costs, monthly mortgage payments going up by several hundred pounds a month could tip them over the edge,” he concluded.

Self-certified Sophisticated Investor

Please read

I declare that I am a self-certified sophisticated investor for the purposes of the restriction on promotion of non-mainstream pooled investments. I understand that this means:

I am a self-certified sophisticated investor because at least one of the following applies:

I accept that the investments to which the promotions will relate may expose me to a significant risk of losing all of the money or other property invested. I am aware that it is open to me seek advice from someone who specialises in advising on non-mainstream pooled investments.

High Net Worth Investor

Please read

I make this statement so that I can receive promotional communications which are exempt from the restriction on promotion of non-mainstream pooled investments. The exemption relates to certified high net worth investors and I declare that I qualify as such because at least one of the following applies to me:


Sign up for first access to new developments and exclusive property investment opportunities.

We send limited and targeted emails on new launches and exclusive deals which best fit your areas. We are trusted by over 30,000 active buyers as their source for new stock.

  • New property developments
  • Professional market reports
  • Property deal alerts
  • Development updates
Manchester property investment


Receive trending news straight to your inbox and stay up to date on all of the property market trends and advice.

Established since 2005 we are a leading voice of authority and commentary on the UK property market. Our news is trusted by Apple News & Google News.

  • UK housing market
  • Mortgage & money
  • Buy-to-let landlords
  • Guides & advice

Talk to us

Speak to our UK property experts today:


+44 (0) 333 123 0320

Open from 9am-6pm GMT


+852 6699 9008

Open from 9am-6pm HKT