UK beats Europe on house prices

UK house price growth has outperformed every eurozone country except Spain during the past five years.

The average cost of a home in the UK soared by 90% between 2001 and 2006, compared with an average rise of just 40% across countries that use the euro, according to Britain’s biggest mortgage lender Halifax.

Spain was the only country where house prices outperformed the UK, with the average cost of a home there doubling during the same period.

France and Ireland also enjoyed strong gains, with the price of property rising by more than 70% in both countries.

But while the majority of countries in the eurozone enjoyed double-digit house price growth during the five years, prices in Germany fell by 5%, while in Austria they edged ahead by just 6% and in Portugal they rose by only 7%.

Despite strong growth in recent years, the UK has only the third most expensive homes in Europe at an average of £187,100.

Ireland has the most expensive property, with the average home costing £209,300, followed by the Netherlands at £190,300. Property is cheapest in Finland at an average of just £92,300, followed by Belgium and France, where homes still cost less than £120,000 on average.

Around 70% of people in the UK now own their own home, fewer than the 82% who do so in Spain, but more than the 45% of people who are homeowners in Germany.

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