Only Spain outpaces UK house price growth

Since 2001, house prices in the UK have risen 90 per cent, compared with a 40 per cent increase for the Eurozone as a whole over the same period. Spain is the only country with higher house price growth than the UK in the past five years, with an increase of 100 per cent.

In the past year, Belgium experienced the largest rise in house prices of 18 per cent, followed by France at 15 per cent and Spain at 14 per cent. The UK had the fourth-largest increase of 13 per cent.

Of the 12 Eurozone members included in this analysis, Germany is the only country to have experienced a fall in house prices, with a fall of 5 per cent over the past five years.

House price growth in UK and Eurozone

Country / One year / Two years / Five years

Spain / 14 per cent / 57 per cent / 100 per cent

UK / 13 per cent / 30 per cent / 90 per cent

France / 15 per cent / 48 per cent / 73 per cent

Ireland / 12 per cent / 33 per cent / 71 per cent

Belgium / 18 per cent / 39 per cent / 60 per cent

Luxembourg / 0 per cent / 24 per cent / 58 per cent

Greece / 11 per cent / 20 per cent / 56 per cent

Eurozone / 8 per cent / 24 per cent / 40 per cent

Netherlands / 5 per cent / 15 per cent / 38 per cent

Finland / 6 per cent / 21 per cent / 29 per cent

Portugal / 0 per cent / 2 per cent / 7 per cent

Austria / 5 per cent / 3 per cent / 6 per cent

Germany / -2 per cent / -4 per cent / -5 per cent

Sources: Halifax and European Central Bank

Despite rising faster than the UK over the past five years, house prices in Spain are lower. The average price in Spain stood at £150,200 at the end of 2006, compared with an average of £187,100 in the UK. The average house price in Ireland (£209,300) and the Netherlands (£190,900) is higher than in the UK.

Average house prices in selected countries (£)

Country / 2005 / 2006

Ireland / £190,700 / £209,300

Netherlands / £185,700 / £190,900

UK / £170,100 / £187,100

Spain / £134,500 / £150,200

France / £105,600 / £119,300

Belgium / £101,200 / £117,600

Finland / £88,600 / £92,300

Sources: Halifax and European Central Bank

The owner-occupation rate in the UK is currently around 70 per cent. Spain has a significantly higher owner-occupation rate of 82 per cent, whereas the Netherlands has a lower owner-occupation rate of 55 per cent. In Germany, the rate is even lower at 45 per cent.

Outside the eurozone, house price growth in the UK has outperformed Australia, Canada and the United States over the past one, two and five years. The US is the only one of these countries to have recorded a fall in house prices, with a 1.3 per cent decline in the past year.

Along with faster growth, the UK also has a higher average house price than Australia, Canada and the US.

House prices in UK, Australia, Canada and US Q1 2007

Average price (£) / One-year change / Two-year change / Five-year change

UK / £192,300 / 13 per cent / 30 per cent / 90 per cent

Australia / £164,200 / 9 per cent / 13 per cent / 54 per cent

Canada / £132,200 / 10 per cent / 24 per cent / 36 per cent

US / £132,600 / -1.3 per cent / 18 per cent / 36 per cent

Sources: Halifax and Datastream

UK owner-occupation is the same as in Australia and slightly higher than the US (69 per cent) and Canada (66 per cent).

Tim Crawford, group economist at Halifax, said: "UK house prices have risen more rapidly than in its Eurozone neighbours over the past five years. House price growth, however, has slowed in the past couple of years compared with the likes of Belgium and France recording bigger increases. Two of the largest economies surveyed – the US and Germany – are the only ones to have seen a fall in house prices."