1. What is House Price Percentage Increase?

The percentage increase in house prices measures how much a property's value has grown over time. It's a key metric for homeowners, buyers, and investors to understand market trends and property appreciation.

2. How Does the Calculator Work?

The calculator uses the percentage increase formula:

Where:

• New Price — Current or selling price of the property
• Old Price — Original or purchase price of the property

Explanation: The formula calculates the relative change in price compared to the original price, expressed as a percentage.

3. Importance of Price Increase Calculation

Details: Understanding price increases helps homeowners evaluate their equity, buyers assess market conditions, and investors analyze potential returns. It's also useful for refinancing decisions and property tax assessments.

4. Using the Calculator

Tips: Enter both prices in pounds sterling (£). The old price should be the original purchase price or value at a previous time point. The new price should be the current value or selling price.

5. Frequently Asked Questions (FAQ)

Q1: Should I include renovation costs in the new price?
A: Only if you're calculating return on investment. For pure market appreciation, use the property's current market value regardless of improvements.

Q2: How does this differ from annual growth rate?
A: This shows total percentage increase. For annualized growth, you'd need to factor in the time period between the two prices.

Q3: What's considered a good percentage increase?
A: Varies by market and time period. Historically, UK house prices have averaged 3-5% annual growth, but this varies significantly by region.

Q4: Does this account for inflation?
A: No, this is the nominal increase. For real terms growth, you'd need to adjust for inflation using separate calculations.

Q5: How accurate are these calculations for property valuation?
A: While useful for estimation, professional valuations consider many factors beyond simple price comparisons.