Property values over the last 70 years
The Queen’s Platinum Jubilee celebrations were wonderful and the pomp and ceremony spectacular – congratulations to Her Majesty on her 70-year reign! It is fascinating to look at the economics of her whole 70-year reign in terms of house values.
Princess Elizabeth came to the throne in February 1952 and received the news of her father’s, George VI, death whilst on tour in Kenya. The average price of a house in the UK at that time was £1,931 equivalent to £56,087 today when adjusted with inflation – compared with £260,771 in the first quarter of this year according to recent analysis of the market. In real terms this means that house prices have increased by 365% during the Queen’s 70-year reign!
Government statistics showed that in 1952 men earned £8.70 a week (women £4.60) while today average weekly earnings are £615: this means that homes were about four times the average (male) earnings then compared with eight times now. In the 1950s and 1960s, people did not need large city salaries to live in style. Then housing pulled away!
The highest inflation-adjusted price growth of the past 70 years was a little over two decades into the Queen’s reign, with prices rising by 32% in the year to September 1973. The most significant period of prolonged growth was from 1995 to 2007, when prices rose by 173% in real terms. For those who bought during this time representing a significant gain in today’s value.
Nationwide have reported that during the Covid-19 pandemic (end of 2019 and end of 2021) there has been a phenomenal growth in house prices of 14.3% year on year, aided partly by extraordinary measures such as the stamp duty holiday. As life returns to normal and people are feeling more confident about moving house, the market remains strong, mortgage repayments remain relatively affordable, and whilst supply is still at roughly half the level it was pre-Covid, it is slowly recovering. Life in the country remains a popular choice as people have re-evaluated their quality of life alongside the ability to combine commuting into London less frequently and a work from home ethos developing.
At Lambert & Foster we combine local knowledge with professional advice, working closely with all our clients to provide a high level of service and strong sales that brings our clients back to us time and again.
If you are thinking of selling and you would like to arrange a market appraisal, or if you are actively looking for your new home and would like to register your details, please contact one of our local offices and speak to our experienced residential teams, who will be delighted to help.
