A study performed by Online Mortgage Advisor shows that, from 1974, house price growth under Labour has resulted in 119% increases in real terms versus just 5% under Conservative governments.
The study analyses house price growth during each prime minister’s term, along with their housing policies, and highlights the social and economic events that affected the market.
House Price Growth Higher under Labour
From 1974-2019, house price growth (taking inflation into account) from all four Labour prime ministers’ terms in office, added together (119%), significantly outstripped that of Conservative prime ministers (5%). Only one region of the UK – Northern Ireland – saw higher house price growth under Conservative governments. This challenges two commonly held beliefs: that house prices rise higher in real terms under Conservative governments and that the Conservatives are responsible for pricing people out of the housing market!
The highest annual house price growth (under a single prime minister) since 1974 was recorded in 1988 under Margaret Thatcher’s government, at 29%. Meanwhile, Gordon Brown suffered the lowest annual house price growth of all prime ministers, at -15%. Tony Blair oversaw higher house price growth in his term in office than any other prime minister – 140% with inflation and 211% without inflation.
If you’re concerned more about the availability of housing, rather than values, then official data reveals that David Cameron built the fewest homes of any prime minister since 1923.
The Winners and Losers
Unsurprisingly, different regions of the UK performed differently under Labour and Conservative governments. The following regions experienced the highest growth under Labour: the North West, London and Scotland. Meanwhile, these regions saw the lowest under Labour governments: Northern Ireland, the East Midlands and East Anglia.
During Conservative Governments, London was in the top three again, along with the Outer Met and South East. However, the following regions didn’t fare so well: the North, Scotland and Northern Ireland.
Are Conservative or Labour PMs Better for the Housing Market?
The data seems to dispel the common belief that the Conservatives boost the property market with a focus on homeownership. That said, are house price increases always a good thing for the market?
View the analysis in full here: https://www.onlinemortgageadvisor.co.uk/blog/prime-ministers-house-prices/
