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.
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|
|Bread||Medium white loaf||1.8p (4¼d)||£1.12||6,122%|
|Butter||250g||5.3p (1s – ¾d)||£1.34||2,428%|
|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.
Guy Kelsey, JSS Private Client, Exclusive Search & Acquisitions, 17c Curzon Street, London W1J 5HU
020 7664 6644, email@example.com