Homes built before 1919 have put on most value, report reveals

Published 02nd Dec 2011

* Edwardian and Victorian properties are more 'in
demand'
* Age of house determines its size, style and location,
survey reveals


Homes built before 1919 have risen in value more than any other type of property over the past 25 years, a report reveals today.

The study, by the Halifax, said the oldest homes in the country were clearly the best.

The report says pre-1919 homes are popular because there are fewer of them, and they tend to be in the best locations.

Over the past quarter of a century, the report reveals, homes falling into this category have risen in price by more than 450 per cent.

This is equivalent to an average increase of more than £500 every month for 25 years, a price rise which has not been matched by any other type of property.

In 1986, pre-1919 homes had an average value of £33,619, making the category the cheapest of the four ‘ages’ of property.

By 2001, the average had increased to £117,990 and today it is £188,473, an increase of 461 per cent, or £516 every month.

The other three ‘ages’ of property are 1919 to 1945, 1946 to 1960 and 1960 onwards.

Martin Ellis, housing economist at the Halifax, said it was easy to see why pre-1919 properties were now more expensive than any other.

He 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.

‘This is because there are fewer of them. They are often larger, situated in desirable locations, and have a popular style.’

The cheapest properties are homes built between the end of the Second World War, which triggered a building boom, and 1960.

They cost an average of £144,988, and have risen in value by only 249 per cent over the past 25 years.

As the study highlights the popularity of older properties, it raises concerns about the Government’s moves to encourage people to buy new-build homes.

The Prime Minister has said he wanted ‘everyone in this country’ to experience the ‘magic moment’ of getting the keys to their first flat.

But the Government scheme, which allows people to buy with only a five per cent deposit, is available only to those who want a newly-built home.

And it is this type of property which has plunged in value over recent years amid fears of further falls.

Since the credit crunch began, the Halifax figures show, homes built after 1960 have dropped by nearly £40,000 in value.

Henry Pryor, a leading independent housing expert, said: ‘If a man in a hard hat offers you a subsidised mortgage on a nice new house or flat that he has built, just say no. Ask for 15 per cent off instead.’

Source: ' ThisIsMoney '

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