Royal Celebrations at CFP
In what is sure to be the biggest highlight of the British calendar for 2016, the Queen will be celebrating her 90th Birthday this year, on two separate occasions. The first being her actual birthday today, followed on by the Birthday parade on her official public birthday which will take place on a Saturday in June.
In honour of this special occasion, we have decided to look at some of the changes to the property industry that have occurred since the Queen’s birth in 1926:
Since 1926, house prices have risen by 47,021 per centIn 1926 around 77% of the population were renting, however in 1939 this started to change and by 1971 there was an equal percentage of those renting and owning.
Rental sector policies that followed on from the World Wars impacted the percentage of those socially renting. In 1919, social renting began to rise and by 1981 it was at 31%. However when the ‘Right to Buy’ scheme was introduced we saw a decrease back to 18%.
In the 1980’s, there was a sharp rise in owner-occupation. This followed on from the introduction of the Right To Buy Scheme, with approximately 1.3million sales going through with the scheme between 1981 and 1991
In 1992, as the economy came out of recession, house prices began to rise and continued to do so for 15 years!
However, all good things must come to an end and in 2007 house prices began to fall, continuing to do so for the next 3 years.
Due to higher house prices, tighter lending requirements, declining wage growth and rising inflation, there was an increase of 1.6m people renting their home from 2001 to 2011. Meaning schemes like the ‘Buy-To-Let’ flourished.
By 2011 the average house price was nine times larger than the average wage, meaning households needed to save for much longer in order to get on the property ladder, resulting in an increase of 1.6 million people choosing to rent.
Based on some of these facts, if the Queen (or more likely her mother) had purchased a home in 1926 for the average price of £619 she would have a royal profit of £290,886 with the house now being worth £291,505. Now that’s a profit fit for a Queen!
How will you be celebrating the Queen’s birthday this year? Will you be joining in with the street parties or enjoying a traditional afternoon tea in your office? Tweet us your royal celebrations @CFPSoftware #CFPRoyalCelebrations