House prices deliver 138 times Royal return

Analysis from the UK’s leading equity release adviser Key Later Life Finance ahead of the Platinum Jubilee shows house prices have increased 138 times in value during the Queen’s 70 years on the throne.

Average house prices were £1,891 in 1952 at the start of her reign and are now £260,771 – which is an increase of 138 times. 

That said, new houses haven’t done quite as well - in 1952 on average they cost £2,107 and are now £279,031 which is only 132 times higher.

While inflation naturally means that spending power decreases over time, it is sobering to thing that today’s monthly household disposable income £2,616 (£31,400 per annum) would have bought you a property outright during the coronation.

Will Hale, CEO at Key, said: “We’ve seen some huge changes during the course of the Queen’s reign – including rapidly increasing house prices.  While not a direct comparison due to inflation, it is incredible to think that today’s monthly average household disposable income could buy you a home at the time of the Coronation. People trying to buy houses can be excused for wishing we could go back to 1952.

“That said, the data also demonstrates the long-term strength of the housing market and the value of property wealth as part of most people’s overall assets. While nothing is certain, history suggests that investing in a home pays off over the long term – and increasingly we are finding that people are choosing to capitalise on this investment.  

“In Q1 2022, equity release customers released an average of £110,000 which they used to manage existing unsecured debt as well as mortgage borrowing, boost their income and support wider families. Decisions around using housing equity needs to work for the homeowner now and in the future but with the support of a specialist financial adviser, they can understand the positive impact it can have on their and their family’s lives.”

House prices only grew by 6.7 times on average in the first 25 years of the Queen’s reign up to her Silver Jubilee in 1977. Between the Silver and Golden Jubilee in 2002 prices increased around eight times.

The increase from the Golden to the Diamond in 2012 was 59% in just 10 years while the rise from the Diamond to the Platinum has been a similar 58%. The table below shows prices across the Queen’s reign.