Ten Question Quiz: How Well Do You Know the UK Housing Market?

From headlines on falling house prices to minimal micro-homes, the UK housing market receives a lot of attention.

But amidst constant chatter and change, how well do you truly know the market?

Take our 10 question quiz to see if you can call yourself a housing-market-mogul. When you’re finished, you can learn more about the data behind the answers by scrolling down.

 

 

 

 

 

 

 

 

 

• In June 2017, what was the average house price across the UK?

The UK House Price Index states that, as of June 2017, average house prices across the UK were £223,257. This figure represents a 4.9% rise compared to June 2016 and 0.8% rise since May 2017.

 

• What is the average monthly rent across the UK?

As of July 2017, HomeLet’s rental index shows the average monthly rental cost across the UK is £925. In London, the cost of renting is £1,564.

 

• How many houses were built in the UK between 2010 and 2016?

Between 2010 and 2016, the number of permanent dwellings completed by tenure was 874,360.* To view an interactive timeline of this since 1969, see the 3^rd graph featured in our blog post “Is Property a Volatile Investment?”

In explaining why homeownership has become a “distant dream,” Sajid Javid argued in the UK’s Housing Whitepaper that Britain simply hasn’t built enough homes.

*Table 209, permanent dwellings completed, by tenure and country.

 

• During the financial crisis of 2007-2009, how dramatically did UK house prices fall between October 2007 and March 2009?

According to Nationwide’s Monthly Indices (Post ’91), house prices were £186,044 in October 2007, and £150,946 in March 2009. This equates to a fall of 18.87% over a 17-month period. In comparison, the FTSE All Share fell by 32.8% in 2008 alone.

 

• In May 2016, the average time to sell a property in the UK was ____ days according to Rightmove.

According to Rightmove, it only took 57 days on average to sell a house in the UK in May 2016. This was the fastest ever recorded time to sell since 2010, when Rightmove first started recording the trend. During this time, properties in the South East were sold within 4 weeks on average, yet properties in the North East took an average of 10 weeks.

 

• Between 1996 and 2016, house prices rose by _____%.

According to Nationwide*, house prices in Q4 2016 were £205,937, and house prices in Q4 1996 were £55,169. This equates to an increase of 273%. Despite the drop between 2007 and 2009, the overall growth was positive, which is one of the main reasons that long-term investors feel comfortable ignoring short-term losses.

*Nationwide’s UK House Prices Since 1952

 

• Approximately what percentage of homes are owner-occupied in the UK?

The National Audit Office (NAO) published a report in January 2017 which suggested the figure to be 62%, with 20% of homes being privately rented, and 17% of homes being socially rented.

 

• The percentage of 25 to 29 year olds owning their home decreased from 55% in 1996 to ____ in 2015.

According to the Office for National Statistics, the percentage of 25 to 29 year olds who own their own home was 55% in 1996, and decreased to 29% in 2015. Likewise, the number of 30 to 34 year olds who owned their own home decreased from 68% in 1996 to 45% in 2015.

 

• Total homeowner equity in England reached £____ in 2016

According to City A.M, “Total homeowner equity in England reached £2.6 trillion in 2016.” £1.8 trillion of equity belonged to homeowners aged 55 years and above.

In a report published by Savills in 2016, the total value of the UK’s housing stock reached £6.17 trillion. Of the total value of housing stock, London was home to £1.612 trillion.

 

• The House of Commons Library published a briefing paper in 2017 detailing the restrictions that foreign buyers face when purchasing property in the UK. What are these restrictions?

UK property investment is remarkably accessible to international investors. The briefing paper, published by the House of Commons Library, compares the restrictions from country to country. The UK refrains from imposing buying restrictions which are exclusive to foreign buyers.

Switzerland, on the other hand, caps the number of properties available to foreign buyers. Each canton is allocated a proportion of these properties every year. In India, unless a property is acquired by way of inheritance, foreign buyers are prohibited from purchasing “any immovable property.”

You can compare each country’s restrictions here.

By Jenna Kamal

Capital at risk