In 2008, the global financial crisis hit and house prices in the UK tumbled.  
 
It was a tough time for buyers and sellers alike, but now it seems that the market has finally bounced back.  
 
Prices have steadily increased since 2013 and according to Halifax, the average price of a home in the UK is now around £290,000 - that's a £25,000+ increase from last year.  
 
So, what does this mean for you if you're thinking of buying or selling a property?  
 
Let's take a look at how prices have changed between 2008 and 2022 in some of the biggest cities in the UK. 
 
In 2007/2008, the average house price in the UK was £160,000 
In 2007, the UK housing market saw a major milestone as the average house price broke through the £160,000 barrier.  
This was a significant moment for first-time buyers who had been previously priced out of the housing market.  
However, this spike in prices wasn't to last as the global financial crisis began to bite and soon average house prices had dropped down to £150,000 as demand plummeted in 2008 and 2009.  
 
Yet despite these dramatic fluctuations in house prices, Britain's appetite for property revealed an underlying resilience.  
More people than ever bought their own home for the first time between 2012 and 2017, with figures showing a consistent rise across all regions of the country.  
Clearly there is still an underlying value placed on homeownership despite changes in house prices over time - something that can only consolidate our continued strength in the UK property market. 
 
In 2009, prices decreased by 4% to £153,000 
2009 was a challenging year for many people, but in the housing market it brought great news. After steadily rising prices over the previous few years, 2009 saw a major drop in the average house price.  
According to The Times, prices decreased by 4% from £159,000 to £153,000 in one year – a significant reduction.  
 
This meant that more people could now afford to buy their own home or save money on their mortgage repayments.  
In addition to this good news, the decrease gave frustrated first-time buyers a much-needed glimmer of hope during an otherwise difficult period marked by downturn and mortgage difficulty.  
 
Although prices have since gone back up again, those that made their purchase or refinanced during this time have no doubt benefited greatly from this fortunate market decline.  
Ultimately, it goes to show that even amid challenging economic climate there can be something positive hidden away if you look hard enough! 
 
In 2010, there was a slight rebound with prices increasing by 2% to £156,000 
After several years of declining housing prices, 2010 saw a welcome change in the market. By mid-year, the average UK house price was up two percent to £156,000, indicating a slight rebound in the sector.  
 
This positive shift was largely attributed to government schemes such as Home Buy Direct and Help to Buy, which allowed first-time buyers to purchase homes at more affordable prices.  
Government initiatives also helped boost consumer confidence by providing financial security during this period of economic uncertainty.  
In addition, mortgages were made more freely available during these times as rates hit near record lows.  
 
As such, developers found themselves in high demand with potential buyers flocking to secure property investments.  
All in all, it appears that 2010 gave a much needed boost to the UK’s housing market and set the tone for a much brighter future ahead. 
 
However, between 2011 and 2012, prices dropped again by 3% 
After a decade of steady growth, the cost of living took an unexpected dip in 2011 and 2012. Many people were hoping for continuing price increases, so news of reduced prices was a pleasant surprise.  
This drop in prices affected all areas of consumer spending, from groceries to gas to rent.  
 
Although the brief decrease was not enough to make a drastic difference in anyone's wallet, it did ease the pressure on households struggling to make ends meet.  
People began to believe that there might be some breaks hidden between rising costs, providing at least a small measure of hope during uncertain economic times. It could be argued that this short-lived decrease helped prevent people's financial situation from taking an even bigger hit.  
 
Therefore, though it may have been short-lived and seemingly insignificant compared with other economic trends, the temporary drop in prices between 2011 and 2012 was potentially quite important indeed. 
 
Since 2013 until now (2022), there has been a continuous rise in house prices with the average now being around £290,000 - an increase of 81% since 2008! 
Over the last nine years, house prices in the UK have increased significantly, with 88% of areas across England and Wales seeing an increase in average property prices since 2013.  
 
According to data from Nationwide, prices have jumped 81% since 2008, and currently sit at around £290,000 - a record high that previously seemed out of reach.  
Even though the price increase is expected to slow over time due to economic factors, it is still a cause for celebration; especially for homeowners who started investing way back when phrases like 'the global pandemic' often took back seat conversations.  
 
Despite these increases, first-time buyers should still be able to find property in affordable areas within their budget thanks to lenders offering flexible mortgages and various types of government assistance schemes.  
 
Buying a house is one of the biggest - if not the biggest - purchase someone will make during their lifetime; so although house prices might seem hefty now compared to several years ago, for some people it could be the right investment opportunity. 
 
 
 
Conclusion 
So, what does all this mean for house prices in the UK? Well, although there are variations across the country, on average prices have been steadily increasing since 2008.  
This means that if you're thinking of buying a property in the near future, now may be a good time!  
However, it's important to remember that these trends can change rapidly, so it's always best to do your own research and speak to an expert before making any decisions.  
 
Thanks for reading! 
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