Facts About Property Property continues to represent a safe long-term investment. The Department of Records states that in the last 32 years property has risen in 28 of the years and fallen in only 4. So, the trend for property values remains consistently upwards … despite short term market fluctuations. Since 1956 the compounded average annual increase in house prices has been 8.5%. To put this into perspective, a house bought in London 50 years ago for £1000 would today be worth more than £1 million. Inflation in the last 50 years has been 1,689%. The stock market has grown by 2,700%, but UK house prices have zoomed ahead by 22,000%. Demand for new housing is outstripping supply and there's a current shortage of 4 million homes in the UK. With the population expected to rise by 10% by 2030 and council restrictions on new developments, there's no way the supply can meet the demand. A recent Housing Figures Study says the average house price is expected to grow from £101,161 to £300,643 by 2020. With escalating house prices pushing buyers out of the market and increasing numbers singles and families looking to rent, the rental market is expected to grow by 40% by 2012. Rents have risen on average by 13% per year since 1962, says the Office of National Statistics.