House prices rise 273% in 50 years

The average house price has increased in real terms by 273% over the past 50 years, according to the Halifax.

The noughties saw the biggest hike, with prices up by 62%, slightly ahead of the 61% rise recorded during the 1980s.

Meanwhile, the worse performing decade for house prices was the 1990s when prices fell by 22% in real terms.

Pronounced cycles have been a key feature of the housing market since 1959, with four significant periods of rapid house price growth: 1971-73, 1977-80, 1985-89 and 1998-2007. Each of these periods was followed by a significant fall in real house prices, the research found.

There has been a steady increase in owner-occupation rates, increasing from 43% in 1960 to 68% in 2008. This was partially propelled by the introduction of the right to buy scheme introduced in the 1980s.

As the idea of owner occupier took hold, the proportion of privately rented homes fell from 33% in 1961 to 14% in 2008.

Perhaps due to the marked upsurge in house prices, which have acted as a barrier to people making their first step onto the housing ladder, the private rented sector has experienced a surge, up from 9% in 1991 to 14% in 2008.

After the deflation of the housing market following the collapse of Northern Rock in August 2007 there were more than 3000 mortgage products; more than 12 times the number available today.

However, there are signs the housing market is experiencing a rebound as the number of mortgage products surpassed the 2,500 mark for the first time last week since May 2009.