The 2010s were the weakest decade for house price growth, according to a new Nationwide report.
It found that house prices only grew by 33% in the decade, the weakest growth recorded since prices grew 21% in the 1990s.
London was the “top performer” in terms of house price growth, with prices rising 66%, twice as fast as the UK average. The outer metropolitan region also “significantly outperformed”, with prices rising 54% during the 2010s.
Northern regions saw a “relatively weak” house price growth across the decade, whilst prices in Scotland remained subdued with a rise of 8%. Northern Ireland saw the worst growth, however, with only a 2% growth compared with the end of 2009.
Nationwide also concluded that low interest rates supported affordability throughout the decade, with an improved mortgage affordability for first-time-buyers towards the end of the decade.
Nonetheless, it also concluded that high house price to earnings ratios have made deposits a “major barrier” for first time buyers over the decade. House price growth continued to exceed earnings growth, which resulted in a further rise in the house price earnings ratio.
Andrew Harvey, Nationwide’s senior economist, said: “We’ve looked at how the last 10 years compares with previous decades across a variety of housing metrics.
“The 2010s has been the weakest decade for house price growth since the 1990s; nevertheless, prices still rose by 33% over the decade, somewhat above the 20% rise in average incomes over the same period.”
He added: “The last decade has also seen a significant widening in the gap between the least affordable and most affordable regions.
“London has been the least affordable region for most of the past 40 years, but its house price earnings ratio (HPER) has reached new highs in recent years, reaching 10.2 in 2016, from 6.1 at the start of the decade, with only a modest improvement to 8.8 at the end of 2019.”