"Our data shows that while some areas have seen dramatic increases, house prices have risen slowly, in line with incomes in northern regions"
- Daniel Copley - Zoopla
House prices across the UK have increased by 74% over the last 20 years, rising from £113,900 to £268,200, making it more difficult for people to return to the areas where they grew up, according to a new analysis from Zoopla.
52% of UK adults say they would consider moving back to their childhood hometown. However, sharp rises in property values, particularly in the South East and Eastern England, have made that increasingly unaffordable for many.
Two decades of growth reshapes the South
While London has seen house prices climb 119% since 2005, neighbouring regions have also recorded steep rises. Average prices in both the South East and Eastern England have grown by 87%, pushing house price-to-earnings ratios up from 7.8 to 8.6 in the South East and from 7.1 to 7.7 in Eastern England.
“House prices have soared by 74% since 2005, making that nostalgic return financially unattainable for many, especially in hotspots in the South East and Eastern England,” said Daniel Copley, consumer expert at Zoopla. “However, the picture is far from uniform across the UK. Our data shows that while some areas have seen dramatic increases, house prices have risen slowly, in line with incomes in northern regions. This means that for some, the dream of returning to their roots might be much more attainable than they think.”
In Surrey, Elmbridge has recorded the largest rise in the South East, with prices increasing 110% from £338,800 to £712,700. The area remains popular due to its proximity to London and green spaces. However, other towns in the region have seen slower growth. In Southampton, for example, prices rose 63%, from £138,500 to £225,500.
In Eastern England, St Albans saw the most notable growth, with prices climbing from £298,600 to £622,100, a 108% rise. The city’s popularity among commuters, along with its historic architecture, continues to attract buyers. Conversely, Great Yarmouth registered the slowest growth in the region, with average prices increasing by 77% from £105,900 to £187,700.
The North remains within reach for many
The Northeast stands out as the most affordable region for those hoping to return home. Average prices have increased by 39% over the past 20 years, the smallest rise nationally. In addition, the house price-to-earnings ratio has improved, falling from 5.7 to 4.
Sunderland has seen the lowest increase in the region, with average prices up 22%, from £101,600 to £124,000. The North West and Yorkshire have also seen affordability improve. In the North West, price-to-earnings ratios have fallen from 6 to 5.1, and in Yorkshire, from 5.7 to 5.
In Blackpool, average prices rose just 26%, from £98,400 to £124,300. In Hull, average prices increased by 49%, rising by £38,100 since 2005.
“Our latest analysis certainly brings to light the profound impact that two decades of house price growth has had on the dream of 'returning home',” explained Copley. “Zoopla has a wide range of affordability tools available for would-be buyers on its site to help you plan your next move, including a mortgage calculator that can help you to understand what you could afford based on your income.”
Industry reactions
Tom Bill, head of UK residential research at Knight Frank, commented, “If you grew up in north-east England, bought in London and are now returning to your roots, you’re in luck. You will get significantly more bang for your buck, and the equity accumulated means your mortgage could be wiped out altogether.
"The gap between the capital and the rest of the country has narrowed in recent years as more affordable parts of the UK have seen stronger house price growth. The squeeze in London means more buyers are looking beyond the M25, and that often includes locations where they have roots, a trend that was accelerated by the pandemic and shifting work patterns.”
Toby Leek, President of NAEA Propertymark, comments, “Rural and picturesque areas across the county are popular destinations that many people choose to move to, especially those that are looking for a quiet escape, such as certain coastal locations. However, this sometimes comes with a bigger price tag.
"As places increase in popularity, this raises house prices to levels that mean many current or ex-locals who may wish to move back to their hometowns where they grew up could find it hard to afford to purchase a home. It also has the potential to be extremely challenging for people to migrate around the locality as well, due to higher prices.
“Not only are these areas highlighted becoming harder for many aspiring homeowners to move to, but across the country, homeownership in general is becoming increasingly difficult to achieve. Ultimately, we need additional support for first-time buyers, a review of stamp duty, and more homes to be built to keep pace with growing demand. These must be designed with amenities and infrastructure as an integral part of the process.”
