The measures we see are, of course, averages:
A property based in East Anglia, which was valued at £246,995 in April 2006 would be worth around £225,000 today, a fall of 9pc, according to the Nationwide House Price Index calculator on its website. But the house price index does not differentiate between a new-build property or one that is, say, 150 years old. In reality that property could be worth just £120,000.
And of course, within averages, there\’s a lot of information being smoothed out.
During the boom there was (hey, even I had noticed it) some concern that the building regulations, who got planning permission and where, were leading to the building of an awful lot of flats and not many single family houses: we Brits traditionally preferring the latter to the former.
But regulations on brownfield developments and the density required of others meant that it was the former that got built and it\’s those that have really tumbled in price.
If anyone stumbles across a proper investigation of this could you let me know? I\’d be interested to see proper numbers rather than just the anecdotes I\’ve got so far.