The idea of returning to your childhood hometown – a comforting place filled with old memories, familiar parks, and beloved corner shops – is something many Brits have dreamed about. But for more than half of the UK population, this dream is slipping out of reach. A recent study by Zoopla paints a sobering picture: the dramatic rise in house prices over the last 20 years has made it nearly impossible for many to return to where they grew up.
As your trusted estate agents in Borehamwood, Laming Hope Residential understands how these trends affect local buyers and sellers. Let’s explore the figures and what it all means for those yearning to go back to their roots.
The Harsh Reality
Across the UK, house prices have soared by an average of 74% since 2005. Back then, the average home cost just under £114,000. Today, that figure stands at £268,200. While that jump might seem manageable at a national scale, the picture drastically changes when we break it down by region.
For instance, in the South East and Eastern England, prices have increased by a staggering 87%. The dream of returning home to these areas has become increasingly out of reach for many former residents.
Elmbridge in Surrey, for example, saw prices rocket from £338,800 to £712,700 – a massive 110% increase. That kind of growth puts homeownership firmly out of the picture for young professionals or families who might have left home to pursue careers or education elsewhere and now wish to return.
The Widening Gap Between Affordability and Earnings
House price-to-earnings ratios have historically been a good way to measure housing affordability. Nationally, this ratio sits at around 6.4 – meaning that, on average, a home costs over six times a typical annual salary. In the South East, this ratio has grown from 7.8 to 8.6, and in Eastern England, it’s risen from 7.1 to 7.7.
As house prices have risen faster than people’s wages, many are left chasing a moving target. It’s not just a matter of saving more; it’s a race against an increasingly steep curve.
These numbers aren’t just statistics; they translate directly into everyday frustration for homebuyers. A young couple looking to settle down in their childhood town may find that what was once a modest neighbourhood is now home to properties well beyond their budget. For many, this leads to compromises: longer commutes, smaller homes, or settling in entirely different towns.
House Prices in Borehamwood
Here in Borehamwood, we see this trend playing out in real time. With proximity to London, excellent transport links, and ongoing developments, house prices in our area have climbed significantly. However, Borehamwood still offers relatively better value compared to hotspots like central London or high-demand pockets in Surrey and Hertfordshire.
We are seeing more clients consider neighbouring towns or slightly more rural areas as alternatives – places where they can still maintain a connection to their past while making a financially sound investment.
The Regional Divide
Interestingly, not all regions have experienced the same surge in prices. The North East, for instance, has seen a much more modest increase of just 39%. In Sunderland, one of the most affordable spots, average house prices have only risen from £101,600 to £124,000 – a 22% increase.
In fact, the house price-to-earnings ratio in the North East has dropped from 5.7 to 4, making it one of the few regions where affordability has actually improved. That’s fantastic news for those who grew up in this area and are now thinking of returning.
If you’re someone who left the North East to pursue opportunities in the South but now wants to return, you might be one of the lucky few. With accumulated equity from a property in London or the South East, moving back home could be a financially liberating step – possibly even mortgage-free.
Changing Work Patterns Post-Covid
With the increase in remote and hybrid working, many people no longer need to be tied to the big cities for career opportunities, making a move back to a hometown not only sentimental but practical.
But for those raised in areas that have become significantly more expensive, the dream remains elusive. Even with remote working options, they face the challenge of finding something affordable in an area that has dramatically changed in price – and often, in character.
For example, if you grew up in Borehamwood 20 years ago, you’d remember a quieter, more suburban feel. Today, it’s a lively commuter town with soaring property demand. While that’s great for local growth and investment, it complicates matters for nostalgic returnees.