The £51 chicken and an £88k salary. What would things cost if they had risen with house price inflation since 1971?
Office for National Statistics figures have revealed house prices in August had reached a record high of £247,000 – but how does that compare to everything else over the past 30 years or so?
House price inflation is far higher than the rate of inflation since 1971, when decimalisation came into play.
This is Money has crunched the numbers using our inflation calculator to find the average house price should actually be £67,483 if it had risen in line with inflation over the last 42 years.
In 1971, the average house price was £5,632 – with house prices now sitting at £247,000, this represents a rise of 4,286 per cent.
House price inflation: With house prices up 4,286% in 42 years, how much would other items such as chicken and beer be if they had risen at the same rate?
So how have other items and wages fared over the years?
And how does this stack up against both reality, inflation and house price inflation.
According to our figures, if wages had risen at the same rate as house price inflation, the average wage would be £87,720 – while a 2.5kg chicken would be £51.31…
HOUSE
Price in 1971: £5,632
Price now: £247,000
How much they should cost? (using inflation figures since 1971): £67,483
WAGES
Average in 1971: £2,000
Average now: £26,000
Where they should be (using inflation figures since 1971): £24,000
Where they would be if following house price inflation: £87,720
Houses vs wages: The red line shows wages, the blue houses. If wages had grown in line with house prices, they would be nearly four times higher than they currently are
PINT OF BEER
Average in 1971: 15p
Average now: £3.18
What it should be (using inflation figures since 1971): £1.80
Where it would be if following house price inflation: £6.58
LOAF OF BREAD
Average in 1971: 10p
Average now: £1.24
Where it should be (using inflation figures since 1971): £1.20
Where it would be if following house price inflation: £4.39
PINT OF MILK
Average in 1971: 6p
Average now: 46p
Where it should be (using inflation figures since 1971): 72p
Where it would be if following house price inflation: £2.63
PACK OF 20 CIGARETTES
Average in 1971: 27p
Average now: £7.98
Where it should be (using inflation figures since 1971): £3.24
Where it would be if following house price inflation: £11.84
1KG OF SUGAR
Average in 1971: 9p
Average now: 98p
Where it should be (using inflation figures since 1971): £1.08
Where it would be if following house price inflation: £3.59
2.5KG CHICKEN
Average in 1971: 1.17p
Average now: £6
Where they should be (using inflation figures since 1971): £14.02
Where they would be if following house price inflation: £51.31
Inflation: The purple line is the price of goods if they went up with house price inflation, green line is actual cost today, red is what they should cost and blue is the price in 1971
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