With commentators suggesting there may be a general election in the UK sooner rather than later, new research has found that average house prices have increased more under a Labour Government than a Conservative one snice 1951.
The analysis from online estate agents Housesimple shows that over a period with 14 Prime Ministers, prices under Labour have increased on average by 0.72% month on month, compared to 0.57% under Conservatives.
Labour’s dominance is built on Tony Blair’s 10 year tenure as Prime Minister when average UK house prices increased from £58,403 in May 1997 to £181,810 in June 2007. That’s an average increase of £123,407 and equates to a monthly average price rise of 0.94%.
The highest average monthly house price increase under a Labour government came under James Callaghan, from April 1976 to May 1979, when house prices increased on average 1.32% a month.
The highest average monthly price rise in the last 70 years actually came under a Conservative government, led by Sir Edward Heath from June 1970 to March 1974, when prices increased on average1.8% a month.
Gordon Brown is the only Prime Minister since 1951 whose time in office saw a drop in house prices, when they fell from an average of £181,810 by 6.7% to £168,719 when he was succeeded by David Cameron.
‘In modern British history, we’ve seen an overall increase in home ownership but since 2003 this has declined, especially home ownership amongst 35 to 44 year olds, priced out of the market and forced to rent for longer,’ said Sam Mitchell, Housesimple chief executive officer.
‘First time buyers are also less likely to be able to buy the property they want first time around, meaning they need to make one or more steps on the ladder to attain their desired property,’ he pointed out.
‘Depending on who you speak to, Britain’s housing affordability issues are either down to Labour or Conservative policies. Regardless of who you may blame, the fact remains we are in desperate need of more affordable housing, particularly in our major cities, to meet fervent demand,’ he explained.
He also pointed out that unaffordability is particularly severe in London and the South East and it likely that families in particular are likes to start leaving the capital in the coming years in search of more affordable areas.
‘Regions such as the North West and Yorkshire are likely to be the beneficiaries from an influx from the South. Families are attracted by the combination of thriving local economies, strong job prospects and affordable family housing,’ said Mitchell.
‘Although house prices are now on the rise in these areas, they aren’t soaring at the rate we have witnessed in the south in recent times, and there is still plenty of stock that is fairly priced,’ he added.
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