#10yearchallenge: Looking back at the market over a decade
With the #10YearChallenge taking social media by storm at the moment, the Knight Frank Research team has taken a look at how the property market has changed over a decade.
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Gráinne Gilmore, head of UK residential research at Knight Frank, said:
“The political landscape may be uncertain at present, but a decade ago, it was economic uncertainty which dominated the agenda as the global financial crisis started to take hold.
"House prices fell by 16% during 2008. While they bounced back to some extent during 2009 and 2010, the UK market started to gain real momentum in 2013 as economic growth accelerated. Prices are now 14.5% higher than the previous peak of the market in 2007.
"The financial crisis also affected housing transactions, which fell to a near record low in 2008 from 1.6 million in 2006. The data doesn’t quite tell us the full story about new homes being built. The year to March 2008 marked a high point in the supply of new homes during the last decade.
"However house building decreased every year for the next four years as the credit crunch crunched the market. The turnaround in new homes delivery since then, a 78% increase since 2012/13, marks a concerted effort by homebuilders, councils and policymakers. There is still some way to go however, as the Government is targeting 300,000 new homes a year by the early 2020s.”
