House prices regain half of value lost in recession

  The UK housing market has recovered half of the value lost as a result of the economic downturn, according to property website Zoopla.co.uk.   The website reports that the average UK home is now worth £218,705, up £21,667 (11.02%) since March 2009.   The figure remains more than £20,000 below the November 2007 peak, when average house prices reached £239,063.   Around half the ground lost over the prior 16-month period has been made up.      Property prices in England have recovered more ground than elsewhere, having climbed 11.46% since March 2009, with the average home in England now worth £226,342, but still well below the level reached in November 2007 of £246,714.   In contrast homes in Wales have been much slower to rebound, up only 7.07% since March 2009 to a current average value of £154,521.   Scottish property values have climbed 9.12% on average to £156,217 over the past 16 months, having fallen 18.1% in the prior 16-month period when they reached a high of £174,805.   The London market has seen the most dramatic turnaround, with average house prices today at new highs and above the levels seen in November 2007.   Having fallen by 16.06% from a high of £410,577 in November 2007 to a low of £344,635 in March 2009, London house prices have made up all the ground lost in the downturn and now stand at £418,802. London house prices have risen by a remarkable 21.52% over the past 16 months.          Nicholas Leeming, commercial director of Zoopla.co.uk, said: “We have reached an important point in a market seeking direction and have come through two periods of equal length and opposing directions.   “Despite the most recent 16 months of gains, only half of the value lost in the prior 16 months has been recouped. It is entirely possible that we may now have a similar length period of time where the market hovers without a clear direction.”   paul.norman@estatesgazette.com   To access all EGi news stories and commercial property data sign up for a free trial today, or visit the subscription options page to find out more.