Online Mortgage Advisor has highlighted in its latest study the difference in house price growth between Labour and Conservative governments.
From 1974, house price growth under Labour has resulted in 119% increases in real terms versus just 5% under Conservative governments.
House price growth higher under Labour
The study takes into account inflation and looks at house price growth during all four Labour prime ministers’ terms in office. Added together, this totals 119%. Only Northern Ireland saw higher house price growth under Conservative governments.
Online Mortgage Advisor states that 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%.
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. It was at 140% with inflation and 211% without inflation.
The report also points out that David Cameron built the fewest homes of any PM since 1923.
The winners and losers
As you might expect, different regions received varying results under Labour and Conservative governments.
Highest growth under Labour governments:
- The North West
Lowest growth under Labour governments:
- Northern Ireland
- The East Midlands
- East Anglia
Highest growth under Conservative governments:
- Outer Met
- South East
Lowest growth under Conservative governments:
- The North
- Northern Ireland
Are Conservative or Labour PMs Better for the Housing Market?
Online Mortgage Advisor concludes: “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?”