Thursday 21 April 2016

The average property has increased 47,000% during the Queen’s lifetime


As the Queen celebrates her 90th Birthday in the most expensive residential home in the world (Buckingham Palace, which is worth over £1bn), I thought it might be interesting to see how property prices have changed since her birth on the 21st April 1926.

Back then the average price of a property in the U.K was just £619. Ninety years later the average property now costs £291,505, meaning you could have bought 471 homes for the same money in 1926! With a pint of milk costing 1.3p and a loaf of bread costing 1.8p when the Queen was born, times certainly have changed!

Just before World War II, property prices had increased just £40 to stand at an average of £659. It was seemingly after the Second World War when property prices really started to take off. The Queen’s first child, Prince Charles, coincided with the ‘baby-boomers’ generation, who have overseen this meteoric rise. When he was born in 1948 the average property cost £1,751, a figure which had risen to £2,006 by the time the Queen was coronated in 1953.

Three decades later, when Prince Charles married Diana in 1981, property prices had increased to £24,188 (up 1,280% since his birth).

Another decade on to the Queen’s ‘annus horribilis’ in 1992, with the breakdown of three of her childrens marriages and the fire at Windsor Castle (now re-built and worth around £200m) and prices had more than doubled to an average of £61,336.

Five years later, the year of Princess Diana’s death, and prices had risen a comparatively modest 24% to £76,103. This compares to a huge 69% rise in the next five years that took the average property price to £128,265 on the Queen’s golden jubilee year of 2002.

Fast-forward to today to complete the journey that has seen property prices increase 47,021% since the Queen’s birth and it is clear that property has far exceeded the gains of everything around it.

In fact, the U.K cost of living has increased by ‘only’ 5,413% in the same ninety year period, meaning that £619 cash in 1926 is equivalent to just £34,105 today. House prices have risen more than gold (20,425%) and shares (11,685%), whilst a pint of milk would cost over £6 today had it increased at the same rate as property!

A few weeks ago I declared that the average property in Chichester would be worth £1m by 2030, if the previous rate of property price increase were to persist. Taking this a step further, on Prince William’s 90th Birthday in 2072 the average property would be worth £11.3m whilst house prices will average £86m on Prince George’s 90th in 2103!


chichester observer property headline


(This article was featured in the Chichester Observer's property section 

on 21st April 2016).

Clive Janes, CRJ Lettings.  

www.crjlettings.co.uk



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