Her Majesty the Queen turned 90 years old on 21st April this year. Since Queen Elizabeth II was born in 1926, average UK house prices have risen from a modest £619 to £291,504 (based on the latest month’s ONS figures). This represents an incredible 471 fold increase over 90 years – implying a 47,021% rise in average UK house prices.
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Comparison with other investments
There is no doubt that average UK property prices over the Queen’s long 90 years of life have risen significantly, making residential property purchases a top performing investment.
If the £619 invested in an averagely priced UK property in 1926 was instead invested in UK equities, it would have risen to £72,952 by the beginning of 2016. A 118-fold increase, equivalent to an 11,685% rise.
If invested in gold, it would have risen to £127,051. A 205-fold increase, equivalent to a 20,425% rise (gold was £4.25 an ounce in 1926, and is at time of writing £876 per ounce).
Over the period the UK’s cost of living index rose by 5,413% implying that £619 cash in 1926 would be now worth £34,105.
A shopping basket – 1926 vs. 2016
The following table shows how the cost of five supermarket shopping trolley items have changed over the past 90 years:
Item | Quantity | 1926 price | 2016 price | % rise |
(old money) | ||||
Milk | 1pint | 1.3p (3d) | 42p | 3,131% |
Bread | Medium white loaf | 1.8p (4¼d) | £1.12 | 6,122% |
Butter | 250g | 5.3p (1s – ¾d) | £1.34 | 2,428% |
Sugar | 1kg | 3.2p (7¾d) | 61p | 1,806% |
Cheddar cheese | 1kg | 13p (2s – 7¼d) | £7.28 | 5,500% |
Source: ONS 1926 and February 2016
It is interesting to note that if a 250g pack of butter’s price back in 1926 had risen at the same rate as house prices it would now cost £24.97 and one kilogram of cheddar cheese would cost £61.26.
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Guy Kelsey, JSS Private Client, Exclusive Search & Acquisitions, 17c Curzon Street, London W1J 5HU
020 7664 6644, guykelsey@jssprivateclient.com