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UK House Price Crash – Early 90’s

Notes

Below is a graph/data showing how the average house price declined in the early 90’s, which ultimately lead to a housing crash.

Cause: In the late 1980s, there was a boom in property prices fuelled by a rapid increase in mortgage lending, which proved to be unsustainable in the long run. Eventually, the housing market crash was caused by a combination of economic factors, including a rapid increase in interest rates, a recession, and overvalued property prices.

From the peak to the bottom, there was an approximate fall of 25% (similar to the following UK housing crash in 2007/08), but bear in mind the house price data is not adjusted for inflation.

The data is taken from Nationwide house price index, which is based on the mortgages they give to home-buyers.

UK 90's House Price Crash Overview
Hightest price£62,782 (Jul 1989)
Lowest price£50,128 (Jan 1993)
Biggest monthly drop 4.06 / £2,326 (Oct 1990)
From high to low 25.24%
MonthAverage House Price (£)Change (%)
Jun 198962,244 0.00
Jul 198962,782 0.86
Aug 198962,782 0.00
Sep 198962,782 0.00
Oct 198961,495 2.09
Nov 198961,495 0.00
Dec 198961,495 0.00
Jan 199059,587 3.20
Feb 199059,587 0.00
Mar 199059,587 0.00
Apr 199058,982 1.03
May 199058,982 0.00
Jun 199058,982 0.00
Jul 199057,245 3.03
Aug 199057,245 0.00
Sep 199057,245 0.00
Oct 199054,919 4.24
Nov 199054,919 0.00
Dec 199054,919 0.00
Jan 199154,547 0.68
Feb 199154,547 0.00
Mar 199154,547 0.00
Apr 199155,418 1.57
May 199155,418 0.00
Jun 199155,418 0.00
Jul 199154,903 0.94
Aug 199154,903 0.00
Sep 199154,903 0.00
Oct 199153,635 2.36
Nov 199153,635 0.00
Dec 199153,635 0.00
Jan 199252,187 2.77
Feb 199252,187 0.00
Mar 199252,187 0.00
Apr 199252,663 0.90
May 199252,663 0.00
Jun 199252,663 0.00
Jul 199252,243 0.80
Aug 199252,243 0.00
Sep 199252,243 0.00
Oct 199250,168 4.14
Nov 199250,168 0.00
Dec 199250,168 0.00
Jan 199350,128 0.08
Feb 199350,128 0.00
Mar 199350,128 0.00
Apr 199351,918 3.45
May 199351,918 0.00
Jun 199351,918 0.00
Jul 199351,746 0.33
Aug 199351,746 0.00
Sep 199351,746 0.00
Oct 199351,050 1.36
Nov 199351,050 0.00
Dec 199351,050 0.00
Jan 199451,327 0.54
Feb 199451,327 0.00
Mar 199451,327 0.00
Apr 199451,362 0.07
May 199451,362 0.00
Jun 199451,362 0.00
Jul 199451,731 0.71
Aug 199451,731 0.00
Sep 199451,731 0.00
Oct 199452,114 0.73
Nov 199452,114 0.00
Dec 199452,114 0.00
Jan 199551,084 2.02
Feb 199551,084 0.00
Mar 199551,084 0.00
Apr 199551,633 1.06
May 199551,633 0.00
Jun 199551,633 0.00
Jul 199551,334 0.58
Aug 199551,334 0.00
Sep 199551,334 0.00
Oct 199550,930 0.79
Nov 199550,930 0.00
Dec 199550,930 0.00
Jan 199651,367 0.85

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