Harlow property market 1999-2024
The Harlow property market has seen a massive return on property prices since July 1999.
The last 25 years has seen the average price of a property climb from £69,444 in July 1999 to £318,945 in July 2024. Source Office of National Statistics (https://www.ons.gov.uk/).
That is a massive increase of some 459%.
However, it is worth noting that if Harlow property prices had kept in line with inflation then the average price would be just £164,177!
Looking at individual types of property:
The average price of flats were £42,275 in 1999. The average price now is £190,918.
Terraced properties in 1999 were £66,013 where as now in 2024 they are averaging £317,949.
Semi detached properties in 1999 were on average £81,922, but now in 2024 they are £411,032 on average.
Finally, detached properties were £154,067 in 1999. In 2024 they average out at £549,001.
SEMI DETACHED PROPERTIES HAVE GIVEN THE BEST RETURN OVER THE LAST 25 YEARS.
THEY HAVE INCREASED BY A PHENOMINAL 501%
Average yearly salaries in the UK
Harlow property market 1999-2024
With the exception of 2020 -2021, salaries have risen every year. However, that does not tell the full story by any means.
Whereas Harlow property prices rose by 459% over the 25 year period in question, Salaries only rose by 200%!
Here lies to main problem. The differential between salaries & property prices is virtually unrecognisable.
Just look at the graphic below:
You can see just how the gap has grown over the last 25 years.
In 1999 the average Harlow property was 3.9 times the average salary. By 2024 it has climbed to 8.92 times the average salary!
Below are the individual years & salary to property ratios:
1999: 3.9
2000: 4.21
2001: 4.72
2002: 5.31
2003: 6.21
2004: 6.63
2005: 6.87
2006: 7.01
2007: 7.16
2008: 7.16
2009: 6.39
2010: 6.78
2011: 6.86
2012: 6.86
2013: 6.62
2014: 7.08
2015: 7.75
2016: 8.68
2017: 9.44
2018: 9.23
2019: 9.41
2020: 9.27
2021: 9.96
2022: 9.59
2023: 9.25
2024: 8.97
Of course, there were 13 years during the 25 year period that we are looking at when money was cheap!
13 years when it was 0.75, 0.5. 0.25 & even 0.1%!
Bank of England interest rates
Those 13 years between 2008 & 2022 money was ridiculously cheap to borrow. It didn’t really matter that the salary to property price ration grew from 7.16 to 9.59. But since 2022 and that ill fated Liz Truss budget that skewed the economy and sent inflation through the roof, times have been hard.
Back in 1999 an average mortgage of £60,000, even at 7% interest meant repayments of £425 per month.
That equates to £5,100 a year or 28.64% of an average annual salary.
Today, a mortgage on the same property would probably cost around £2,060 per month.
That’s £24,720 a year or 69% of an average annual salary!