House prices in the increased by 51.8% over the last decade, rising from £176,561 in December 2014 to £268,087 in December 2024, according to Yopa’s latest study.
However, the research found that when adjusted for inflation, the increase was just 12.1%.
First-time buyers saw similar trends, with home values rising 50.6% over 10 years, or 11.2% after inflation adjustments.
Meanwhile, former owner occupiers experienced a 51.7% rise, or 12% when considering inflation.
New-build properties saw the most significant price hike, increasing by 79% between December 2014 and December 2024.
Even with inflation adjustments, the growth remained at 33.1%.
Existing properties, by contrast, rose by 51%, or 12.3% after inflation.
The cost premium for new-builds compared to existing homes jumped from 23.7% to 46.6% in that period.
Verona Frankish, CEO of Yopa, said: “The topline rate of house price growth seen over the last ten years alone can be pretty scary at first glance, to say the least, with the average value of a home increasing by almost 52% since 2014.
“However, the reality is that this rate of growth is far more palatable when taking inflation into account, although it’s fair to say that the plight of the nation’s homebuyers certainly hasn’t improved when it comes to the affordability of purchasing a property.”
Frankish added: “What is interesting is that the gap between the cost of a first home and the rest of the market has remained largely consistent, as the cost of a home across both market segments has increased at almost identical rates.
“The same certainly can’t be said for the new-build sector though, with the value of a new home sky rocketing over the last decade when compared to the increases seen across the rest of the market.”
