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Sample Inflation Comparison Over 35 Years

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An example of inflation over 35 years

In 1970 the Range Rover was introduced at the price of £1996. The price of the `average house’ at the time just under £5000

The price of a Range Rover today £50000

The price of the “average house” £180000

In 1970 a house was 2.5 times the cost of a Range Rover

Therefore today £50000 * 2.5 = £125000.

Would you think it reasonable if today’s average house price were £125000

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An example of inflation over 35 years

In 1970 the Range Rover was introduced at the price of  £1996.  The price of the `average house’ at the time just under £5000

The price of a Range Rover today £50000

The price of the “average house”   £180000

In 1970 a house was 2.5 times the cost of a Range Rover

Therefore today £50000 * 2.5  = £125000.

Would you think it reasonable if today’s average house price were £125000

it's not hugely different to this is it? I get the impression current average price is between 150-180k. If you factor in a small, over populated country, with limited housing stock, and a greater propensity for single living (either pre-marriage, or old and having lost spouse / partner, or divorced) thus driving demand in a limited supply, this is not necessarily surprising?

edited for typos...

Edited by xian

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it's not hugely different to this is it? I get the impression current average price is between 150-180k. If you factor in a small, over populated country, with limited housing stock, and a greater propensity for single living (either pre-marriage, or old and having lost spouse / partner, or divorced) thus driving demand in a limited supply, this is not necessarily surprising?

edited for typos...

There isn't a housing stock shortage, there is a shortage of affordable housing there is a big difference between the two.

Where i live that difference of 25K - 55K is a huge difference, you are expected to want to pay 115K for a 2 up 2 down or 150K for a 3 bed semi, so the actual trade up is that small margin which you don't think is significant (obviously it will vary with location) when the average wage round here is 18K you do the maths.

Just yesterday i saw a house up for sale for 115K (its a 2 up 2 down terrrace) my baby sister bought one of these 2 up 2 down just 2 doors away in better condition for 52K about 4 years ago. Unfortunatly wages round here havn't doubled unlike FTB'r property prices.

HPI has increased remarkably and it will retract remarkably too (unless you buy into 10-15 year stagnation) but that being said , i do not think you can compare a new revolutionary luxuary vehicle which has just been released to the market to a product that has been around for ages (housing stock).

In 1997 ( i think) i bought a Pentium 2 400Mhz for £1600 (top of the range), i will guess FTB house price at 45K, so thats a multiple of 30. The same computer today would cost about £50, even a equivilant top of the range system with more bells and whistles cost about £1000, so even if house prices remained at 45K :lol: then its a multiple of 45 now.

I'm boring myself plus ive got to go to work, think you can see what i mean though.

Edited by theChuz

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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