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25 October 2007

Property has increased 100 times in value in 50 years

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by Kay Mitchell

Property has increased 100 times in value in 50 years

Research carried out by Home & Capital, the equity release provider, has established that since 1957, property has risen over 100 times in value.

Figures from the Halifax show that the average UK property now costs £198,500. However, 50 years ago this would have cost just £2,000.

Home & Capital estimates that those who have kept their property over the 50 year period now have £198,000 worth of equity.

A spokesperson for Home & Capital said that in theory, most people have moved house at least once during that period and selling up helps you build up even more equity. The average pensioner owns a home worth £66,000 more than the average UK property and has £265,000 of equity.

The spokesperson added that during the period, economic growth has been accountable for the increase, together with restrictions on supply and ease of credit, which have gradually forced up property prices in the UK.

Home & Capital concluded by saying those who retired on a final salary scheme in the nineties are benefiting from good pensions, however the next generation may not be so lucky.

A reduction in the number of final salary pension schemes available and lower returns on some stock market investments in the last few years have changed the emphasis toward property for many.


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