House prices and the future of homes - in graphics

The UK's housing boom ended in 2008 as the banking crisis and credit crunch bit.

In the subsequent years, sales and prices fell in most areas, leaving some people in negative equity. Many potential buyers found they were unable to get on to the ladder as risk-averse banks rationed their lending.

But 2013 has seen hints of a revival in the housing market, driven in part by signs of the return of first-time buyers.

First-time buyer mortgages graphic

Transactions have risen but the number of homes for sale has failed to match demand in many areas, pushing up prices.

Annual increases are now at a level not seen for at least three years.

The interactive content on this page requires JavaScript

UK house prices

Year on year % change

Reset

This is an average across the UK, and might not reflect the fact that prices and activity are growing in some major cities - most notably London - but are still falling in some areas.

Increasing prices create a fresh headache for first-time buyers trying to raise the deposit for a home, even though mortgage rates remain at record low levels.

But some fundamental issues remain for the UK housing market that will affect the chances of people being able to buy or sell in the longer term.

Firstly, the UK remains rather obsessed with the idea of borrowing to own a home compared with the rest of Europe.

Ownership levels, for mortgaged properties, are higher than most of the EU with the exception mainly of Scandinavian countries.

Owners v tenants graphic

Yet there is widespread agreement that there are not enough homes being built to match this demand.

The number of new homes being built and finished fell then stalled during the financial crisis. Only now do builders say it is starting to pick up again, helped in part by government schemes aimed at kick-starting the market.

Housebuilding graphic

But the pace of building means the housing stock is not keeping up with population growth.

Population v housing stock graphic

Looking to the future, properties are going to have fewer people living in them, partly owing to the fact we are living for longer - creating even more of a squeeze for young people hoping to buy a home of their own.

Projected household levels graphic

More on This Story

The BBC is not responsible for the content of external Internet sites

More Business stories

RSS

BBC Business Live

  1.  
    US ECONOMY 06:15: Radio 5 live

    The US releases jobs data later today - GDP figures earlier this week showed the US economy growing strongly. Expectations are that another 230,000 jobs could have been added to the US economy in July and that the unemployment rate may - we'd stress the may here though - have fallen below 6%.

     
  2.  
    US ECONOMY 06:07: Radio 5 live

    US financial expert and businesswoman Terry Savage tells Wake Up to Money the US economic recovery is still difficult to read: "It's kind of a glass half full/half empty kind of thing. Different parts of the economy have picked up, particularly consumer spending on autos and other big items," she says. "It's not what we would call a booming economy . It's just so much better than what we have had for the last few years."

     
  3.  
    06:01: Rebecca Marston Business reporter, BBC News

    In a short while we'll have results from William Hill and British Airways owner IAG trading updates. And we'll have an eye on everything else that's going on. bizlive@bbc.co.uk @bbcbusiness.

     
  4.  
    06:00: Matthew West Business Reporter

    Morning folks. So what's happened overnight? Well the World Trade Organisation has failed to agree a global customs deal.... again. But manufacturing in China grew at its fastest pace in more than two years in July, according to the latest figures.

     

Features

From BBC Capital

Programmes

  • A woman sits on a bed in a scene from Gustav Deutsch's latest film about Edward Hopper's paintingsTalking Movies Watch

    How film-maker Gustav Deutsch brought Edward Hopper’s paintings to life

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.