Short-term memory and the focus on the current Eurozone crisis have obscured the greater historical price gains made in the United Kingdom’s (UK) residential real estate market, according to HSBC. New research shows that average house prices in the monarchy have increased 86 times – from £1,891 to £162,722 – since the beginning of Queen Elizabeth II’s reign in 1952. The Queen celebrates her 60th anniversary on the throne this year and many have found it an appropriate time to take stock of changes in the market since her rule began. For example, HSBC found that 68% of the country are now owner occupiers, compared to 32% 60 years ago, and the number of dwellings has nearly doubled. For more on this continue reading the following article from Property Wire.
he average property price in the UK is 86 times higher now than in 1952 when the Queen, who celebrates her 60th anniversary this year, came to the throne, new research shows.
At the start of the Queen’s reign the average property was priced at £1,891, compared to an average £162,722 today, the research from HSBC reveals.
By comparison, retail prices have risen by a multiple of 25 over the same period, meaning that for most people buying a home has been a very good investment even after stripping out the effects of inflation.
The number of dwellings in the UK has almost doubled since 1952, with 14.1 million at the start of the Queen’s reign, compared to an estimated 27.3 million today. However, the number of new homes being built each year has fallen by 46% from 248,320 in 1952 to 133,840 in the latest estimate.
Two thirds, 68%, of the country are now owner occupiers, compared to one third, 32%, in 1952. Indeed, at the start of the Queen’s reign half of the country was renting privately compared to 14% today.
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Regional house prices are not available back to 1952, so instead the research has examined house price growth since the Queen’s Silver Jubilee in 1977.
London has seen the largest increase in house prices over the past 35 years, an increase of 1,782% from £15,593 to £293,375. The South West has seen a 1,400% rise from £12,155 to £182,272. East Anglia saw a 1,307% increase from £311,679 to £164,285.
Northern Ireland has seen the smallest increase, but it is still a hefty 665% from £13,322 to £109,562 while Scotland saw a 889% increase from £13,674 to £135,242.
Chelmsford, Perth and St Asaph are to gain city status to mark this year’s Diamond Jubilee. These are not the first new cities created to celebrate the Queen’s reign, other include Preston in England, Newport in Wales, Stirling in Scotland, and Lisburn and Newry in Northern Ireland for the Golden Jubilee in 2002.
Brighton and Hove, Wolverhampton and Inverness gained city status to mark the turn of the century in 2000 and for the Silver Jubilee in 1977 Derby was awarded city status.
‘The housing market has changed a great deal under the current monarch, with the aspiration towards home ownership and the increase in house prices most dramatic over the second half of the Queen’s reign. There is no doubt that property has remained a sound investment over this period,’ said Peter Dockar, head of mortgages at HSBC.
‘Home ownership remains an ambition for many and we continue to make new products available to help first time buyers achieve their dreams of taking their first step onto the property ladder,’ he added.
This article was republished with permission from Property Wire.
