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UK Housing Market Since The Queen's Coronation

June 2012

DORSET based Bournecoast, have highlighted the metamorphosis of the housing marketing since HRH Elizabeth II came to the throne 60 years ago.

Bournecoast was established in 1960, just 8 years after and has been in existence for 52 years this year, so has been growing and flourishing alongside Her Majesty's reign.

With this year's Diamond Jubilee celebrations firmly in everyone's mind and the nostalgia this has inevitably provoked, young and old have reflected on their memories of her reign so far.

The young princess came to the throne at a time when our Country was still recovering from the affects of World War II with some rationing still in place. The Coronation saw the dawn of a positive new era after the hardships seen over the previous two wars.

UK Housing Market Since The Queen's CoronationSimon Tebbutt, Business Development Manager said: "Since The Queen's Coronation, this Country has experienced some amazing changes within the housing market which are indicative of the ways in which our lives have changed. In those days the emphasis was on home ownership for couples, but is now biased towards single occupancy households who are increasingly renting.

"Build quality has improved but this has also brought with it a dramatic increase in house prices and an even steeper decrease in the number of new homes being built" he added.

A recent report from the Halifax states that house prices have typically trebled over the past 60 years, seeing an increase of 186%. Prices have risen 1.8% annually on average which is faster than the average wage rise in that same period.

The 1980s saw the highest recorded house price increases of 42% between 1981 and 1991, greater even than the 30% increase over the last decade. The UK housing market has become highly cyclical since the 1970s and apart from their decline in the 1950s, house prices were relatively stable in the 20 years to 1971 with annual growth averaging just below 1%.

There have since been four periods of rapid house price growth between 1971 and 1973, 1977 and 1980, 1985 and 1989 and 1998 and 2007. Each of these periods was then succeeded by a substantial drop in house prices.

The most recent housing boom - which lasted ten years - was by far the longest period of rapidly rising house prices.

House prices have been the highest in relation to peoples' earnings over the last ten years and whilst more than 15 million homes have been built in the UK in the past 60 years, the number of houses built each year has fallen by one-third since 1951, from 201,860 to an estimated 137,000 in 2011.

This drop has been driven by a dramatic fall in the volume of public sector housing being built. House building reached record levels during the 1960s, with a peak of 425,830 units completed in 1968. Private sector completions also reached a record high in 1968 (226,100). The Report goes on to say that there was an 81% drop in public sector completions between 1951 and 2011. This was in marked contrast to the four-fold increase in private sector completions over the same period. The fall in public sector completions was driven by the significant reduction in local authority house building in the 1980s. The proportion of all completions accounted for by the public sector has dropped significantly from 87% in 1951 to an estimated 24% in 2011.

Our homes are now getting smaller. There is a marked reduction in the size of properties constructed during the last 60 years. Homes of less than 50m2 in size (538 square feet) accounted for 9% of all homes built in before 1980. This proportion doubles for homes built after 1980 (18%). Also, 17% of homes built before 1980 were flats, compared with nearly a quarter after 1980.

There has also been a noticeable shift in the type of properties built in England over the past 60 years. Detached homes represent just 10% of the current English housing stock that was constructed between 1945 and 1964. In contrast, detached properties account for more than a third of the housing stock built after 1980. Semi-detached properties account for the largest proportion (41%) of the English housing stock built between 1945 and 1964, but represent only 15% of homes built after 1980. Flats account for 20% of the housing stock that was built after 1980 compared with 15% of those built between 1945 and 1964.

There has been a dramatic Improvement in the quality of housing since the Second World War. In 1947, more than four in ten households lacked a fixed bath or shower. By 1991, this proportion had fallen to just three in every thousand.

Nearly two in three households were without a basic hot water supply in 1947. In 1991, this proportion had fallen to one in a hundred. Households in England with a second toilet have increased from 31% in 1996 to 41% in 2007.

Home ownership has more than doubled over the past 60 years from 32% of all households in England in 1953 to 66% in 2010-11. The introduction of the Right to Buy scheme in the 1980s was a key driver of the rise, helping to lift owner-occupation from 57% in 1981 to 68% in 1991. However, owner-occupation has been declining steadily in recent years since reaching a peak of 71% in 2003.

The proportion of homes in the privately rented sector has fallen by two-thirds since the 1950s, from 50% in 1953 to 17% in 2010-11. Over the past decade, however, the size of the private rented sector has increased; rising from 10% in 2001 to 17% in 2010-11.

The relative size of the socially rented sector in 2010-11 (17%) was very similar to that in 1953 (18%). This apparent stability conceals the dramatic changes that have taken place in the past 60 years. The proportion of socially rented homes has fallen from a peak of 32% in 1981, largely as a consequence of the sale of council houses under the Right to Buy scheme and the decline in public sector house building. There has been a pronounced decline in the 'traditional' family unit over the last 60 years and the proportion of households in England occupied by married couples has nearly halved since the 1970s from 70% in 1971 to 40% in 2011. The report goes on to say that over the same period, the proportion of single person households in England has risen from 19% in 1971 to 33% in 2011.

Simon went on to say, "Single occupancy households are predicted to replace couple's households as the norm over the next decade." With 52 years of heritage, the Bournecoast team are best placed to give sound advice if you have a property for sale or rent, or are interested in rental properties (long or short term). Please contact Bournecoast's friendly team on 01202 437888 or visit www.bournecoast.co.uk.

Issued by:
Alex Eaton
Marketing
Bournecoast
alexeaton@bournecoast.co.uk
01202 437888

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Bournemouth
Dorset
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