Benchmark
UK house prices vs inflation: real house prices since 1968
The HM Land Registry average UK house price from Apr 1968, restated in today’s pounds and against money printing. It shows how much of the rise was inflation, and when real prices fell.
- Average UK house, Jul 2026 £272,611 HM Land Registry
- Since 2010, £ price +76.1% before inflation
- Since 2010, after inflation +8.4% UK CPI
- From the real peak −12.6% Sep 2021
Key takeaways
- UK house prices are up 76.1% since 2010 in pounds, but up 8.4% after UK inflation.
- Since Apr 1968 they are up 346% in real terms, 2.6% a year.
- The real peak was Sep 2021; prices are 12.6% below it in today’s money.
- 4 real falls of more than 10% since 1968; the deepest was 35.8%.
- Against US money printing (M2) since 2010: down 46.2%.
UK house prices after inflation and money printing
Every period in every lens, Apr 1968 to Jul 2026. Real figures are stated in Jul 2026 money.
−5.1%UK house prices after US inflation since 2010−0.3% a year
Up 46.7% in dollars since 2010. After US inflation, down 5.1%. Against money printing, down 46.2%.
In pounds, up 76.1%, or up 8.4% after UK inflation.
- $ nominal
- +46.7%2.3% a year
- £ nominal
- +76.1%3.5% a year
- Real $ (US CPI)
- −5.1%−0.3% a year
- Real £ (UK CPI)
- +8.4%0.5% a year
- vs US M2
- −46.2%−3.7% a year
- Measured from
- Dec 2009to Jul 2026, 16 years 7 months
- UK house prices, Real $ (US CPI)$367,200
- $ nominal$367,200
- Jul 2026, latest
Loading the chart. Every figure is also in the table below.
| Period | $ nominal | £ nominal | Real $ (US CPI) | Real £ (UK CPI) | vs US M2 |
|---|---|---|---|---|---|
| Past year from Jul 2025 | +3.3% | +1.4% | 0.0% | −1.4% | −2.0% |
| 5 years from Jul 2021 | +14.1% 2.7% a year | +17.8% 3.3% a year | −6.7% −1.4% a year | −8.2% −1.7% a year | +1.4% 0.3% a year |
| Since 2020 from Dec 2019 | +29.6% 4.0% a year | +27.7% 3.8% a year | −0.3% −0.0% a year | −3.1% −0.5% a year | −14.3% −2.3% a year |
| 10 years from Jul 2016 | +39.6% 3.4% a year | +37.6% 3.2% a year | +0.6% 0.1% a year | −3.2% −0.3% a year | −22.4% −2.5% a year |
| Since 2010 from Dec 2009 | +46.7% 2.3% a year | +76.1% 3.5% a year | −5.1% −0.3% a year | +8.4% 0.5% a year | −46.2% −3.7% a year |
| 20 years from Jul 2006 | +25.1% 1.1% a year | +73.5% 2.8% a year | −23.8% −1.3% a year | −2.9% −0.1% a year | −62.9% −4.8% a year |
| Since 2000 from Dec 1999 | +199% 4.2% a year | +259% 4.9% a year | +50.8% 1.6% a year | +82.2% 2.3% a year | −40.2% −1.9% a year |
| Since Apr 1968 first month in our data | –a (see note a) | +8,133% 7.9% a year | –a (see note a) | +346% 2.6% a year | –a (see note a) |
- a History starts Jan 1971.
The average UK house in today’s money
Each year’s average price, and what it comes to in Jul 2026 pounds after UK CPI.
From the December 2009 figure to July 2026, UK house prices rose 76.1%. UK consumer prices rose 62.4% over the same months, so the real gain is 8.4%. About 88.9% of the rise an owner sees on paper went on keeping up with inflation.
The table restates each year’s average price in Jul 2026 pounds. At the real peak in Sep 2021, the average house cost £245,371, which is £311,953 in today’s money against £272,611 now. Prices can rise in pounds for years while falling in real terms, and the table shows which stretches that happened in.
Over the past five years the real figure is down 8.2%, a reminder that the long-run figure includes long flat and falling stretches.
| Month | Price then | In Jul 2026 £ | Real change to now |
|---|---|---|---|
| Dec 1970 | £3,835 | £61,032 | +347% |
| Dec 1975 | £9,036 | £74,463 | +266% |
| Dec 1980 | £19,250 | £84,036 | +224% |
| Dec 1985 | £28,061 | £89,103 | +206% |
| Dec 1990 | £53,337 | £132,554 | +106% |
| Dec 1995 | £51,367 | £107,946 | +153% |
| Dec 2000 | £86,244 | £168,364 | +61.9% |
| Dec 2005 | £147,580 | £267,290 | +2.0% |
| Dec 2010 | £155,405 | £243,502 | +12.0% |
| Dec 2015 | £188,767 | £268,941 | +1.4% |
| Dec 2020 | £228,446 | £298,946 | −8.8% |
| Sep 2021 real peak | £245,371 | £311,953 | −12.6% |
Every real fall since 1968
Falls of more than 10% after UK inflation, with the pound price change over the same months.
After UK inflation, UK house prices have fallen by more than 10% 4 times since 1968. The deepest fall ran from Jul 1973 to Jun 1977: 35.8% in real terms, while the pound price changed +25.7%. Real prices took 13 years 9 months to get back to the old high.
In all 4 falls, the pound price held up at least 10 percentage points better than the real price, because inflation kept running while house prices drifted or held flat. A price chart hides that part; a real-terms chart shows it.
| High | Low | Fall after inflation | Price change | Back to the high |
|---|---|---|---|---|
| Jul 1973 | Jun 1977 | −35.8% | +25.7% | 13 years 9 months |
| Jul 1989 | Dec 1995 | −29.3% | −8.1% | 10 years 6 months |
| Sep 2007 | Feb 2013 | −26.1% | −11.8% | 13 years 9 months |
| Sep 2021 | Apr 2025 | −13.8% | +6.0% | Not yet (4 years 10 months) |
Sources and assumptions
Where the figures come from and what they leave out.
- HM Land Registry UK House Price Index, average price for all property types in the United Kingdom, Apr 1968 to Jul 2026. Contains HM Land Registry data © Crown copyright and database right, Open Government Licence v3.0.
- In the early years the index is published quarterly; each quarter’s figure is repeated for its three months.
- Real figures divide by UK CPI from the ONS, joined to the ONS long-run RPI before 1988. RPI usually ran above CPI, so real returns before 1988 are slightly understated.
- Dollar figures convert at the month-end GBP/USD rate (from 1971). The M2 lens divides by the US M2 money supply.
- Prices only: rent, maintenance, transaction costs and mortgage interest are excluded.
UK house prices: questions
Worked out from the same monthly data as the tables. Educational information, not financial advice.
Have UK house prices beaten inflation?
Over the long run, yes. Since Apr 1968 they are up 346% after UK inflation. Since 2010 the picture is still positive: up 76.1% in pounds, up 8.4% once UK inflation is taken out. Over the past five years the real change is down 8.2%.
What are real UK house prices today compared with the peak?
The highest real price on our monthly data was in Sep 2021. Restated in Jul 2026 money, prices now are 12.6% below it, even though the pound price is up 11.1% since then.
How have house prices done against money printing?
Since 2010 the US M2 money supply has grown faster than UK house prices, which are down 46.2% against it. M2 counts the dollars held in cash, current and savings accounts and money market funds; when it grows faster than an asset, that asset’s share of all the money in circulation shrinks.
Do these figures include rent or costs?
No. They follow the average price of homes sold. Rent, maintenance, insurance, stamp duty and mortgage interest are all outside them, so they are neither a landlord’s total return nor an owner’s full cost.
Important information
Capital at risk. The value of investments can fall as well as rise and you may get back less than you invest. Past performance is not a reliable indicator of future results. Educational information only, not financial advice. Read our disclaimer.