Rightmove

House Price Trendometer

The Rightmove House Price Trendometer shows the growth and decline of property asking prices by area since October 2001. Track the changes in the regional cost of property over the years and understand the key events that have affected the market - do they give an indication of where prices might head in the future?


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Rightmove

House Price Trendometer

Regional Asking Price Change

Total National Change

% 0
   
   
Average Asking Price %Change Average Asking Price
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£99,999 0% £99,999

London

Jan 20
Average Asking Price £000,000
Jan 20
Average Asking Price £000,000
Change 0%

Date of Interest

January 2002

Subprime share of the US mortgage market reaches a low of 7.4% in the year

After years of steady decline, the subprime share of the US mortgage market reaches a healthy low of 7.4% in 2002. Subprime mortgages are those which are given to borrowers with poor credit history, often with high interest rates to offset some of the additional risk.

(Source: Inside Mortgage Finance)

Date of Interest

January 2004

Residential property transactions in England and Wales hit over 1.6million in the year

With a proliferation of cheap mortgages available, residential property transactions in England & Wales hit a high of 1.6 million in 2004.

(Source: HMRC)

Date of Interest

March 2004

UK mortgage approvals reach over 148,000 in a single month

With cheap credit widely available, UK mortgage approvals reach a high of 148,000.

(Source: Bank of England)

Date of Interest

June 2004

Basel II is published.

Basel II, a series of recommendations on banking laws and regulations, is published. The primary goal is to ensure banks put aside sufficient capital to cover their financial risks, thus improving the stability of the worldwide banking system. Due to the complexity and difficulty of its implementation, many countries did not formally adopt the framework until 2008, after the onset of the financial crisis.

Date of Interest

January 2006

Subprime share of the US mortgage market reaches an all-time high of 23.5% in the year

Subprime share of the US mortgage market reaches a high of 23.5% in 2006, up from 7.4% only four years earlier. Many of these subprime mortgages were packaged into ‘mortgage-backed securities’ to distribute their risk, and at the same time were given a triple-A rating to reassure and encourage investors. The triple-A rating was especially important due to many money markets and pension funds being restricted by law to only hold the safest securities.

(Source: Inside Mortgage Finance)

Date of Interest

August 2007

UK Interest rates hit 5.75%

Interest rates hit 5.75% on the 1st August 2007, their highest point for six-and-a-half years. The pound strengthens against the dollar on the back of the news, rising half a cent to $2.0195.

Date of Interest

February 2008

Northern Rock is nationalised.

After a five month attempt to snare a private sector buyer for the bank, Northern Rock’s liquidity crisis finally reaches a peak and forces the government to intervene on the 22nd February 2008. The bank is subsequently brought under a ‘temporary period of public ownership’.

Date of Interest

July 2008

Concerns rise over the stability of Fannie Mae and Freddie Mac

On the 11th July 2008, the New York Times reported that Fannie Mae and Freddie Mac, two of America’s largest mortgage companies, were at risk of being nationalised by the US government. Stock immediately plunged as investors panicked. On the 7th September, both companies were placed into the stewardship of the federal government.

Date of Interest

September 2008

Lehman Brothers files for Chapter 11 bankruptcy protection

On the 15th September 2008, Lehman Brothers is forced to file for Chapter 11 bankruptcy protection in the US. As the fourth-largest US investment bank, the news leads to sharp falls in share prices around the world and to this day remains the largest bankruptcy filing in US history.

Date of Interest

January 2009

Mortgage approvals drop to less than 22,000 a month

Concerns around the economy and a tighter lending criteria lead mortgage approvals to drop to less than 22,000 in January 2009.

(Source: Bank of England)

Date of Interest

March 2009

UK Interest rates hit a record low of 0.5%

From a high of 5.75% only 19 months earlier, UK interest rates hit a record low of 0.5% on the 5th March 2009. On the day of the announcement, the Bank of England also starts a £150 billion round of quantitative easing in an attempt to increase liquidity within the markets.

Date of Interest

Octobe 2009

The UK exits recession

The UK limps out of recession, showing 0.4% GDP growth during the 4th quarter of 2009. This breaks six consecutive quarters of GDP decline which saw the UK economy contract by 7.2%.

Date of Interest

April 2013

Phase one of the Help to Buy scheme is launched

Designed to kick-start the ailing UK housing market, the first phase of the Help to Buy scheme went live in April 2013 offering first time buyers the opportunity to borrow up to 20 percent of the value of a new build home from the Government. For more information about the Help to Buy scheme, please click here.

Date of Interest

October 2013

Phase two of the Help to Buy scheme is launched

The second phase of Help to Buy opened up the scheme to all properties (i.e. both old and new) that cost less than £600,000. It also opened up the scheme to all borrowers and not just first time buyers. For more information about the Help to Buy scheme, please click here.

Date of Interest

May 2014

The OECD warn of an overheating UK housing market in their Economic Outlook.

The Organisation for Economic Co-operation and Development (OECD) encourages both the UK government and the Bank of England to curb mortgage lending in an effort to stop house prices from spinning out of control.