Halifax: Older properties rise in value by £500pm since 1986

Homes built before the First World War have seen the biggest increase in prices over the past 25 years, according to new research.

The Halifax Property Age Review found that houses from this period have jumped in cost by 461 per cent since 1986, from £33,619 to £188,473 in 2011.

This is the equivalent of £516 a month and is more than the average of 357 per cent.

During the same period, properties constructed since 1960 increased in price by 348 per cent, while those built between 1945 and 1960 only grew in value by 249 per cent, the smallest total rise.

However, pre-First World War homes also witnessed the biggest contraction in value since 2007, shrinking by 30 per cent.

Martin Ellis, housing economist at Halifax, explained that Victorian or Edwardian homes are desirable because they are usually bigger than average, have a nice style and are often in good locations.

However, he acknowledged that this could also have been the reason why they have had to decrease in price lately in order to re-attract interest.

"Older properties might have fallen out of favour with buyers because they tend to be bigger than many new houses and are therefore more expensive to buy," he commented.

There has been some disagreement regarding average house prices lately. While Nationwide claimed last month they have risen to £165,798, Land Registry said in the same week they are at £159,999.

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