1. What is House Price Increase?

The house price increase percentage measures how much a property's value has grown over time. It's a key metric for homeowners, investors, and lenders like NatWest to understand property market trends and equity growth.

2. How Does the Calculator Work?

The calculator uses the standard percentage increase formula:

Where:

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

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

3. Importance of Tracking House Prices

Details: Understanding price increases helps homeowners evaluate their equity position, assists buyers in assessing market conditions, and helps lenders like NatWest determine loan-to-value ratios for mortgage products.

4. Using the Calculator

Tips: Enter both prices in pounds sterling (£). For accurate results, ensure both values are positive numbers representing the same property at different times.

5. Frequently Asked Questions (FAQ)

Q1: Should I include renovations in the price increase?
A: This calculator shows total value increase. For pure market appreciation, use original purchase price and current market value without renovation costs.

Q2: What's a good annual price increase percentage?
A: Historically, UK house prices have increased about 4-5% annually, but this varies by region and market conditions.

Q3: How does NatWest use this calculation?
A: NatWest and other lenders use price changes to assess property value changes for remortgaging and equity release products.

Q4: Should I use exact purchase price or adjusted for inflation?
A: This calculator uses nominal prices. For real-terms growth, adjust the old price for inflation before calculating.

Q5: How often should I check my home's value increase?
A: For most homeowners, checking every 1-2 years is sufficient unless considering remortgaging or selling.