You may have
noticed it’s been a little warm of late. But with thunder storms and rain
forecast to hit us as I type, it looks like ten days of 30+ degree temperatures
may be as close as we get to the record, which stands at 18 consecutive days,
set in 1976.
Back then a
pint of milk cost 9p, a loaf of bread cost 18p and, more on topic for my weekly
property article, the average home in the UK cost £11,739. Compared to the
average salary at the time (£2,651) a house cost 4.4 times the average annual
income.
In the
intervening 42 years the cost of a pint of milk has increased 389%, a loaf of
bread 483% and, whilst average salaries have increased by a healthy 941%, house
prices have done so by a whopping 1,728%!
With today’s
average property price of £214,578 compared to the average UK salary of £27,600
it means the average home costs us Brits 7.8 times our annual income, which is
close to twice as expensive comparatively as during the heatwave of 1976!
It also means
those who bought a property back in the Summer of ’76 will have on average made
a little over £200,000 on their purchase; around 7.2% per year on an annualised
basis.
Of course, we
all know that property in some areas are more expensive than others, so let’s
take a look at which region saw the greatest increase in those 42 years. It
won’t surprise many of you that accolade goes to London; where property prices
rose from £14,862 in 1976 to £468,845 today - a rise of 3,055%.
On the other
end of the scale is property in Northern Ireland. In 1976 Northern Irish
property was more expensive than the UK average and only 14% below that of
London. But the average price since then of £12,771 has ‘only’ risen by 967% to
today’s £136,211 - meaning it is now the cheapest region of the UK and 71%
below the average price of a property in London.
Scotland has
only fared slightly better (+1,055%) and Wales isn’t far ahead either (+1,267%)
meaning the majority of the house price increases have occurred in England.
Only the North and Yorkshire & the Humber have failed to outperform the
Welsh, which would have seen all regions of England outperform the other UK
nations.
And just
think, if we have to wait another 42 years to see such a heatwave again the
year will be 2060 and if house prices have risen the same as they have done in
the past, the average property price in the UK will be £3.7m! Now that is a
thought to feel a little hot under the collar.
For more tips about buying, selling, letting and renting in Chichester, please visit www.chipropertynews.co.uk
(This article was featured in the Chichester Observer's property section on August 2, 2018)
Clive Janes, CRJ Lettings
If you are looking for an agent that is well established, professional and communicative in Chichester, then contact us to find out how we can get the best out of your investment property.
E-mail me on clive@crjlettings.co.uk or call 01243 624 599.
Don't forget to visit the links below to view my previous buy-to-let deals and Chichester Property News articles:
c/o CRJ Lettings, 30B Southgate, Chichester, West Sussex, PO19 1DP
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