We’re going back to that historical year, the one that sends tingles down the spines of the nation. If you were lucky enough to be alive, you know exactly where you were when you saw Bobby Moore lift the gleaming Jules Rimet World Cup trophy.
Ever wondered how the housing market has come on since that momentous occasion? Wonder no more as we take a look into the peaks and troughs of the demand and value of UK properties over the last 52 years.
In 1966 (England's World Cup winning year) the average annual pay in the UK was £798 per annum and the average house price somewhere between £2000-£4000, meaning the average house price was only three times that of the average wage.
Putting that in today's terms the average house price would be £61,000, pretty far off the actual average house price in 2018 which is £221,000.
Soon after the 1966 World Cup, PM Harold Wilson put a 6 month freeze on wages in a desperate attempt to steady the economy. However this coincided with a large increase in the population and inevitable inflation, which exerted its influence on the housing market as prices soared at an incredible rate. Peaking in May 1989 (3 years after, Argentina lifted the World Cup trophy in Mexico 1986) to an average house price of £70,246.
In 1992 there was an 18% fall in the average house price. It slipped from around £57,000 in 1990, to £51,000 in 1994, the year that Dunga captained Brazil to a dramatic penalty shoot out win at the Rose Bowl in California against Italy.
The fleeting property crisis was due to the Governments unsuccessful attempt to protect the value of the pound with higher than usual interest rates. This led to increased mortgage repayments and a decreased disposable income and therefore a lack of spending, resulting in the decline in demand and value of properties across the UK.
From the turn of the millennium until 2007, the UK saw a recovery of the housing market as the average house cost more than doubled from £72,000 in 1998 to £176,000 in 2006. Also the year of the World Cup where the world witnessed the shocking headbutt from France legend Zinedine Zidane on Italy's Marco Materazzi.
Italy went on to lift the trophy after all the drama of extra time and penalties. Just like Materazzi, the housing market plummeted with the infamous recession of 2009. With that, the average house price decreased a detrimental 21%.
In 2011 it stabilized again, as UK home owners breathed a deep sigh of relief, especially those who owned properties up North as they saw a huge increase of over 100% in comparison to 63% of London residences.
#agreement in principle, mortgage in principle #capital gains tax #complusory purchase order #double and triple glazing #ecomony #equity release #happiest places #hintsandtips #house in space #land registry #party wall #prepare for moving day #reduce energy bills #renovating your home #semi-detached #splash of colour #tile trends #top10 #types of properties