Analysis by Nested, the modern estate agent, has revealed that despite a cooling property market, UK house prices posted a strong performance in 2022, beating Bitcoin and Ethereum, both of which saw a substantial decline in value.
Nested analysed house price data alongside the value of the top two crypto coins in the market and how the three stacked up when looking at annual returns.
The research shows that the UK property market continued to perform strongly in 2022, despite growing economic uncertainty finally causing the rate of house price growth to cool towards the back end of the year.
In fact, the average UK house price sat at £285,396 last year, up 10.4% versus the average of £258,430 seen in 2021.
In contrast, the average value of Bitcoin fell from $47,000 in 2021 to just $27,796, a year on year drop of 40.9% in value.
At the same time, Ethereum fell by 31.5% to $1,938 in 2022, down from $2,830 in 2021.
However, when looking at the average annual rate of growth seen over the last three years, UK house prices have trailed these alternative investment options.
Throughout the pandemic property market boom (2020 to 2022), UK house prices have increased at a respectable 7.4% on average every year.
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During the same period, Bitcoin has seen a 103% average annual increase, while Ethereum has climbed by 263% on average each year.
But unlike Bitcoin and Ethereum, UK house prices have seen consistent positive growth, rather than the erratic ups and downs associated with crypto currencies.
Alice Bullard, Managing Director at Nested, the modern estate agent, commented:
“The UK property market has not only posted a strong and steady performance in recent years, but has outperformed the two leading crypto coins on an annual basis, despite economic headwinds dampening the rate of house price growth seen towards the back end of 2022.
While there’s no doubt the market has started to cool to an extent, we’ve certainly seen no evidence of the crash that many were quick to call during the latter stages of last year and, if anything, it’s been an extremely busy start to 2023 for agents up and down the nation.
As our research demonstrates, the UK property market continues to be one of the best areas of investment available, bringing a far more consistent return compared to the erratic offering of cryptocurrencies. In fact, we’ve never seen the UK property sector brought to its knees by one mis-informed tweet, which says it all really.
Hardly surprising then, that it can prove such a rewarding and lucrative industry in which to work and that so many of us choose to dedicate our careers within the property sector.”
