House prices have been on the up
Find our what yours is worth these days with our free valuation tool
Friendly, professional and award winning. Our services help thousands of people move every year.
We’re sure it hasn’t escaped your notice that the World Cup is back on, pub tables are being clambered over when England score and the rowdy chants of ‘It’s coming home!” once again fill our streets. In 1966, George Best’s winning goal saw England win the World Cup against Argentina for the first time, and the name, team and date is engrained in the memories of every England football supporter. Now that The Beatles and the beehives of the swinging 60s are things of the past, what else has changed since 1966?
Well, a cheeseburger in 1966 would have cost you around 14p, and in 2018 this has risen to £1.19. England has become more crowded, with an average of 3.7 people per hectare of land compared to 2.25 people per hectare back in 1966. As for the property market, the average house price in the 60s was around £2,006, more than 100 times less than today’s average of £211,000.
In the 60s more people began buying their homes than ever before as, thanks to the rebuilding Britain movement, there was a plethora of new houses readily available. As with most things, it’s all about supply and demand, and this influx in housing supply meant house prices were reasonably low, and more people were able to afford their own homes.
The 70s enjoyed a relatively calm housing bubble, and the 80s saw Thatcher’s controversial Right-to-buy scheme come into full force, offering discounts on social housing and aiding the purchase of over 1 million homes. Then, come the end of the 80’s, the tax relief on the mortgage repayments scheme, MIRAS, was scrapped. People rushed out to buy homes before the scheme ended, prices soared, and the housing market crashed. It would not fully recover until the last 90s/ early 2000s.
Since 2000, house prices have increased by roughly 169%, which is an average of £10,600 a year, and sold prices have gone up by £200,000, on average, since 2001. Despite the financial crash in 2008, prices have continued to remain on the up, and price recovery since the credit crunch has been healthy. In fact, since 2009 house prices have risen by a yearly average of 6.2%, meaning the net worth of the average resident has risen by £12,300 per year over the same period.
You might not be able to buy a house for £2,000 anymore, but the property market has truly weathered the storm of changing legislation, housing schemes and various government policies. Stricter lending criteria since the credit crunch has meant more sensible lending. The housing market seems to have found equilibrium in amongst the turmoil of the last few years. So while it is now less exciting, it is much safer for those who depend on it.
In 1966, we’d been around for 20 years. In 2018, we’ve been around for over 70, and in the 52 years between that World Cup and this one, we have learned even more about property. Find your local branch branch to see how we can help you with your sale, purchase, let, or rent.