Herts property prices increased by up to 80 per cent since 2009
- Credit: Getty Images/iStockphoto
Property prices have shot up by 80 per cent in some areas of Hertfordshire since interest rates fell to 0.5 per cent in March 2009.
Research by HouseSimple.com found that the ‘once-in-a-generation’ record low interest rate environment helped Herts achieve huge growth - and an average increase UK-wide of 41.2 per cent.
Herts fared especially well, with Watford recording the fifth highest increase - behind Cambridge, London, Slough and Oxford - followed by Hemel Hempstead (seventh) and Stevenage (eleventh).
The average property in Watford went up by 80 per cent over the eight year period, from £200,219 in March 2009 to £360,396 in April 2017.
This was compared to a 76.1 per cent rise in Hemel, from £230,686 to £406,312 and a 72.2 per cent increase in Stevenage (£160,350 to £276,201).
You may also want to watch:
Nearby Milton Keynes and Luton also showed strong growth, coming sixth and eighth respectively.
The Bank of England dropped the rate still further in August 2016, to 0.25 per cent.
- 1 April 12: Your guide to what can open from Monday when COVID lockdown rules ease
- 2 Quarter of tenants become owners at St Albans development
- 3 The latest court results for the St Albans area
- 4 What are the district's best pub gardens to visit from April 12?
- 5 April 12: Rhino crash marks re-opening of Whipsnade Zoo
- 6 Food, glorious food! Tom Kerridge's tasty menus announced for Alfresco Diner in St Albans
- 7 Doors opening again for Harpenden retailers on April 12
- 8 Shop Local: Mums team up for pop-up opening on April 12
- 9 Hundreds of Herts health workers decline COVID-19 vaccines
- 10 Major redevelopment underway at St Albans office building
Alex Gosling, CEO of HouseSimple.com, warned that change may be in the offing, however: “It’s been a golden period for UK homeowners, but there are signs that it could be coming to an end as the Monetary Policy Committee (MPC) narrowly voted to hold interest rates at 0.25 per cent.
“House prices are also under pressure from the political and economic uncertainty of Brexit and the fallout from the disastrous General Election result for the Conservative Party. There is no evidence to suggest that property prices are about to plummet, but homeowners and home buyers do need to plan ahead, and make sure they can cover the impact of interest rate rises on their monthly mortgage payments.
“Many homeowners will have never seen an interest rate rise, and may believe rates will never rise. But they will eventually, and when they do, we could see rates rise by 1-2 per cent quite quickly. With many households already feeling the strain of higher day-to-day costs, monthly mortgage payments going up by several hundred pounds a month could tip them over the edge.”