The price of a home in the UK has more than trebled in the last 20 years, with London property jumping the highest, with increases of 239% from £157,453 to £533,437, according to new research.

An average home in the UK would have cost just £91,199 at the end of the last millennium, but today a home would cost £279,997, Halifax found.

Every region saw houses at least double in value, although residents in Northern Ireland experienced the least dramatic increase at 139%, or £97,056.

Scotland and the North of England saw the smallest increases over the period, up 172% and 185% respectively.

Russell Galley, Managing Director, Halifax, said: “The rise in house prices in London since the turn of the century is well documented, and a sharp decrease in affordability just shows how quickly the market has moved.

“Conversely, there are bargains to be had elsewhere such as in the North, Scotland and Northern Ireland where prices have been slightly more subdued and properties compared to earnings are comparatively affordable.

“A renewed focus on housing policy and increased infrastructure investment aimed outside the South East, for example, may go some way to rebalance the differences.”

First-time buyers will face tough times getting onto the housing ladder, with the cost of a first home outstripping the increases seen in the average UK home.

MONEY HousePrices
(PA Graphics)

At the end of 1999, the average first home cost £63,640, rising 264% over the period to £231,442.

Mr Galley explained that new buyers are hugely important to the overall health of the UK housing market.

He added: “Despite a shortage of homes and the ongoing challenge of raising deposits, we know that the number of first-time buyers is moving in the right direction.

“Key to this is continued low mortgage rates and a wealth of options available to first-time buyers, helping to support even more step foot on the ladder.”

Greater London and East Anglia both share top spot for biggest percentage jumps in first home prices, rising by 284%. Both Northern Ireland and Scotland have seen the smallest increases in prices, 160% and 212% respectively.

Two local authorities in London have seen average house price increases of over 400% since the end of 1999 – Newham, up 429%, and Waltham Forest, up 418%.

Nine of the top 10 biggest risers are situated in London, with Brighton and Hove the only exception, Halifax added.