Referendum to referendum - up by 2137%
Since the 1975 in-out referendum, where Britain decided to remain in Europe, the average price of property has outperformed shares and eclipsed the growth in value of gold. In fact, only 30 out of 164 quarters (18%) since Q2 1975 have seen negative house price growth.
Recent research has revealed that the UK housing market has seen a more than eighteen-fold increase (1751%) in average prices since the last time voters were asked whether Britain should stay in or out of Europe. Compared to other investments, residential property has outperformed all other asset classes including stocks and shares (increased 9.5 times since 1975) and gold (up by more than 12 times).
Residential property prices in London have risen the most, rocketing by 3200% - almost double the annual UK average house price growth - since the second quarter of 1975 when Prime Minister Harold Wilson put forward a referendum on what was then known as the European Economic Community (EEC).
Today, a little more than four decades on and less than two months from the UK’s second ever European referendum (June 23), the average UK house price is now £198,564. Back in June 1975, house hunters were being asked to fork out on average £10,728 – today, in real terms, taking into account inflation that would have been just £99,949.
In our area, which the report called the “outer south east”, the average house price in 1975 was shown as £11,414. The average price today is estimated at £255,325, an increase of 2137%.
There is never any guarantee that prices will continue to rise, but even taking into account factors which may put a brake on growth, such as the recent 3% stamp duty hike on second homes and buy-to-lets, if the past is any indication, property will remain a strong long-term.
Check out the value of your home by calling Martyn R Cox & Co on 01993 779020. There is no obligation to sell, but if you do decide to place your property on the market, our commission terms are flexible and on a no sale- no fee basis. Statistics courtesy of Property Partner