Research from the Gradual Homeownership provider, Wayhome, has revealed that the average UK house price has climbed by 13,724% since the coronation of Queen Elizabeth II and could climb a further £20,000 over the coming years following the coronation of King Charles III.
Wayhome analysed property market data on the average price of a home in today’s market, how this compares to the cost of homeownership back in 1953, as well as the cost of purchasing in an area of the current market with royal patronage.
The latest figures released by Nationwide this week show that the average UK house price is currently sat at £260,441 having increased by 0.5% between March and April, although it remains -2.7% down annually.
Wayhome’s analysis of historic house price data shows that back in 1953, when the coronation of Queen Elizabeth II took place, the average UK house price sat at just £1,884.
This means that between the coronation of Queen Elizabeth II and this weekend’s coronation of King Charles III, the average UK house price has increased by a huge 13,724%.
Even after adjusting for inflation, the average price of a property in 1953 was still a comparably affordable £42,633, meaning that today, house prices are still some 511% higher.
But what about wages? Well today the average person earns £33,402 per year, 8,821% more than the £374 annual earnings in 1953. Again, once adjusting for inflation, this £374 equates to an annual salary of £8,463 which means that wages have increased by 295% since 1953, versus an inflation adjusted increase of 511% in the average price of a home.
As a result, the average person required 5 times their income to afford a home in 1953, while today, this has climbed to 7.8 times income.
It could still get worse for those struggling with the affordability of homeownership. In the five years that followed the coronation of Queen Elizabeth II, house prices increased by 7.5% from an average of £1,884 to £2,026. Should we see the same level of house price appreciation following the coronation of King Charles III, house prices could increase by £19,637 by 2027.
Co-founder and CEO of Wayhome, Nigel Purves said, “In the 70 years since the coronation of Queen Elizabeth II, house prices have soared and even after adjusting for inflation, the average homebuyer now faces a considerably larger hurdle when it comes to the cost of homeownership compared to 1953.
At the same time, wages have increased notably but have failed to match the pace of the UK housing market by quite some margin.
So while this weekend will be cause for celebration as we mark the end of one era and the start of another with respect to the reign of the Royal Family, those priced out of the property market will be hoping we don’t see the same meteoric rates of house price growth between now and the coronation of our next monarch.
The good news is that today there are a number of alternative methods of obtaining homeownership that weren’t available to those in 1953. Buying schemes, shared ownership and Gradual Homeownership are just some of the stepping stones helping today’s buyers overcome the financial obstacle of owning their own home.”
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