Pre-1919 homes see top price surges

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Woman outside estate agentsHouses built before the end of the First World War have seen the biggest surge in prices over the last 25 years, but they have also suffered the most since the financial crisis, a study from Halifax has found.

Buyers have been wooed by the period charm of pre-1919 homes, which have risen in value by 461% on average over the last quarter of a century, the equivalent of £516 a month, to typically reach £188,473. This compares with the average house price rise of 357% or £449 per month over the same period to reach £172,506.
Halifax housing economist Martin Ellis said: "The age of a property often determines its size, its style and location.

"Properties from the Victorian or Edwardian era tend to be in higher demand: there are fewer of them, they are often larger, situated in desirable locations, and have a popular style. It's easy to see why pre-1919 homes witnessed such a dramatic increase over the past 25 years."
Despite the surge in prices for older homes over the long term, Halifax found these types of property performed the least well in terms of holding their value since the financial crisis, which it said could be due to a fall in demand for larger houses as people have tightened their belts. These types of home also tend to require more general maintenance.

Prices for homes built before 1919 have declined by 30% since 2007 from £269,101, compared with the average house built since 1960 which suffered the least, only falling by 19%.

Over the last 25 years, properties built from the swinging sixties onwards have enjoyed a 348% price increase to average £169,168.

Stuck in the middle, houses built between 1946 and 1960, which saw the advent of high rise living and more open-plan homes, saw the smallest price increases. These homes rose in value by 249% over the period to average £144,988.

Mr Ellis said: "Modern properties, built since 1960, have their own pull, which is sometimes linked to convenience; whether it is a location on a commuter belt or the fact little extra work is needed.

"Properties built between the end of the Second World War and 1960, on the other hand, include many smaller properties, which will contribute to the smaller rise in price over the last 25 years."
© 2011 Press Association

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