House prices in England: the long-run growth

This is an interactive map of England, showing the compound rate at which the house prices have grown over 10 years. It is based on price data published in Land Registry's House Price Index background tables, seasonally adjusted and smoothed. In order to accurately represent the long-term growth of house prices on the map, we calculate the compound annual growth rate (CAGR) for each region and county/local authority available in Land Registry's tables. For an explanation of why we chose this method, please read more below the map.

Using the map

  • Switch the layers to show the house price CAGR for either the regions or the counties/local authorities (we simply call the latter 'local' or 'local area');
  • Switch the layers to show different periods between 2004 and 2013. It's interesting to see that in the first five years it was Northern England that experienced the highest growth;
  • Click on the map or search for an address/place name to get the stats for that particular area. If you switch the layers while an area is selected, the information in the chart panel will be updated to reflect the changes.
  • When clicked/searched, each local area (white boundary and chart line) is shown by comparison to the region that it belongs to (yellow boundary and chart line);
  • We have also added statistics about the total number of houses sold within each period, as well as the number of new houses started. It is interesting to see in London, for instance, that, with the exception of Hackney and Islington, all the areas experiencing high annual house price growth rates also have a very high sales to new-build ratio.

Why use CAGR?

...Because the actual rate of growth observed from year-to-year, better known as the annual rate of house price inflation, is very volatile and may be misleading. Let's take two examples. In December 2003, the average house price in London was £256,739, whilst in December 2013 it reached £403,792. Thus, the price change in London over ten years was 57.3%, and it may look safe to assume an approximate rate of growth of 5.7% per year.

However, this approach could hide the effect of important losses, such as those that happened between 2008 and 2009 (with much of the lost value being offset only recently). The compound annual growth rate (CAGR) for London, using December 2003 as basis, is 4.6%, which is far lower than our first result, but also more accurate.

Attributions

Data produced by Land Registry © Crown copyright 2014.
It covers the transactions received at Land Registry in the period December 2003 to December 2013. © Crown copyright 2014.

Contains Ordnance Survey data © Crown copyright and database right 2014
Contains National Statistics data © Crown copyright and database right 2014

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Manuel Timita

Co-Founder and Lead Designer at illustreets
Manuel is a UX designer, developer, mapping enthusiast, and part-time Open University student. He loves his girlfriend, England, most Asian and European cuisines, JavaScript, cats, French authors, alternative music, The Witcher, red wine, and The Matrix. Runs on coffee by the gallon and Garibaldi biscuits.

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