Home prices 'at standstill since Northern Rock run'

House prices have been stagnant for five years since the run on Northern Rock in September 2007, property website Rightmove said today.

The average asking price of a property coming onto the market stood at £234,858 over the month, fractionally down on the £235,176 being demanded by sellers five ye ars ago.

The stagnation contrasts starkly with the five years from 2002 to 2007, which saw an inflation-busting 55 per cent boom in average selling prices as the market overheated before the sub-prime crisis.

Director Miles Shipside said: "Back in 2007, few would have believed that house prices would still be the same in five years' time."

Although asking prices have been virtually stagnant since the autumn of 2007, in real terms homeowners are actually more than 15 per cent worse off after five years of inflation running above the Bank of England's 2 per cent target. The £235,176 being asked by sellers in September 2007 is equivalent to just £198,345 when adjusted for the rising cost of living in the past five years.

The standstill in the market also disguises big winners and losers, according to Rightmove, with a North-South divide favouring London and the South. New selling prices in London have outperformed every other region over the last five years — rising 18.7 per cent — in contrast with the cash-strapped North.

Mr Shipside said Londoners were "clear credit-crunch winners", adding: "The challenges for the market are considerable in many parts of the country, but they are even greater in the North with its residents having not recently benefited from the same equity gains of their southern counterparts".

Rightmove's findings came as research from Hometrack said the lending drought since 2007 and the increasing number of baby boomers paying off home loans meant the number of people owning their properties outright could exceed those paying down mortgages within two years.

It said: "Taking the recent growth rates for mortgagees and non-mortgagees over the last 10 years and using this as a basis of forward projections, we calculate that by 2014 there will be more people owning their home without a mortgage than with.

"This is a trend set to continue, re-enforced by lack of mortgage availability and households taking advantage of low interest rates to repay debt."

Discover more property articles at Homes and Property
News
people'It can last and it's terrifying'
Sport
Danny Welbeck's Manchester United future is in doubt
footballGunners confirm signing from Manchester United
Sport
footballStriker has moved on loan for the remainder of the season
Sport
footballFeaturing Bart Simpson
PROMOTED VIDEO
News
Katie Hopkins appearing on 'This Morning' after she purposefully put on 4 stone.
peopleKatie Hopkins breaks down in tears over weight gain challenge
Arts and Entertainment
Olivia Colman topped the list of the 30 most influential females in broadcasting
tv
News
Kelly Brook
peopleA spokesperson said the support group was 'extremely disappointed'
News
The five geckos were launched into space to find out about the effects of weightlessness on the creatures’ sex lives
i100
Life and Style
techIf those brochure kitchens look a little too perfect to be true, well, that’s probably because they are
Sport
Andy Murray celebrates a shot while playing Jo-Wilfried Tsonga
TennisWin sets up blockbuster US Open quarter-final against Djokovic
Arts and Entertainment
Hare’s a riddle: Kit Williams with the treasure linked to Masquerade
booksRiddling trilogy could net you $3m
Arts and Entertainment
Alex Kapranos of Franz Ferdinand performs live
music Pro-independence show to take place four days before vote
News
news Video - hailed as 'most original' since Benedict Cumberbatch's
News
i100
Life and Style
The longer David Sedaris had his Fitbit, the further afield his walks took him through the West Sussex countryside
lifeDavid Sedaris: What I learnt from my fitness tracker about the world
Arts and Entertainment
Word master: Self holds up a copy of his novel ‘Umbrella’
booksUnlike 'talented mediocrity' George Orwell, you must approach this writer dictionary in hand
News
i100
Property search
Property search
Have you tried new the Independent Digital Edition apps?
iJobs Job Widget
iJobs General

Science Teacher

£100 - £120 per day: Randstad Education Chelmsford: Science Teacher - South Es...

NQT Secondary Teachers

£100 - £130 per day: Randstad Education Hull: Randstad Education is actively r...

A Level Chemistry Teacher

£120 - £162 per day: Randstad Education Hull: A Level Chemistry Teacher - Humb...

RE Teacher

£120 - £162 per day: Randstad Education Hull: Teacher of Religious Education ...

Day In a Page

'I’ll tell you what I would not serve - lamb and potatoes': US ambassador hits out at stodgy British food served at diplomatic dinners

'I’ll tell you what I would not serve - lamb and potatoes'

US ambassador hits out at stodgy British food
Radio Times female powerlist: A 'revolution' in TV gender roles

A 'revolution' in TV gender roles

Inside the Radio Times female powerlist
Endgame: James Frey's literary treasure hunt

James Frey's literary treasure hunt

Riddling trilogy could net you $3m
Fitbit: Because the tingle feels so good

Fitbit: Because the tingle feels so good

What David Sedaris learnt about the world from his fitness tracker
Saudis risk new Muslim division with proposal to move Mohamed’s tomb

Saudis risk new Muslim division with proposal to move Mohamed’s tomb

Second-holiest site in Islam attracts millions of pilgrims each year
Alexander Fury: The designer names to look for at fashion week this season

The big names to look for this fashion week

This week, designers begin to show their spring 2015 collections in New York
Will Self: 'I like Orwell's writing as much as the next talented mediocrity'

'I like Orwell's writing as much as the next talented mediocrity'

Will Self takes aim at Orwell's rules for writing plain English
Meet Afghanistan's middle-class paint-ballers

Meet Afghanistan's middle-class paint-ballers

Toy guns proving a popular diversion in a country flooded with the real thing
Al Pacino wows Venice

Al Pacino wows Venice

Ham among the brilliance as actor premieres two films at festival
Neil Lawson Baker interview: ‘I’ve gained so much from art. It’s only right to give something back’.

Neil Lawson Baker interview

‘I’ve gained so much from art. It’s only right to give something back’.
The other Mugabe who is lining up for the Zimbabwean presidency

The other Mugabe who is lining up for the Zimbabwean presidency

Wife of President Robert Mugabe appears to have her sights set on succeeding her husband
The model of a gadget launch: Cultivate an atmosphere of mystery and excitement to sell stuff people didn't realise they needed

The model for a gadget launch

Cultivate an atmosphere of mystery and excitement to sell stuff people didn't realise they needed
Alice Roberts: She's done pretty well, for a boffin without a beard

She's done pretty well, for a boffin without a beard

Alice Roberts talks about her new book on evolution - and why her early TV work drew flak from (mostly male) colleagues
Get well soon, Joan Rivers - an inspiration, whether she likes it or not

Get well soon, Joan Rivers

She is awful. But she's also wonderful, not in spite of but because of the fact she's forever saying appalling things, argues Ellen E Jones
Doctor Who Into the Dalek review: A classic sci-fi adventure with all the spectacle of a blockbuster

A fresh take on an old foe

Doctor Who Into the Dalek more than compensated for last week's nonsensical offering