Tuesday, April 19, 2005

Property and Prime Ministers

www.bychoice.co.uk

Property And Prime Ministers18 Apr 2005 News Item

Did house prices do better under Wilson or Callaghan, Thatcher or Blair? New research reveals all...
The average house in the UK has risen by more than 35 times since 1970, from an average of £4,874 to £172,788, but which prime minister presided over the largest increase?
You might think Thatcher - who made such an issue of creating a conservative home-owning democracy - or Blair - who has presided over the largest boom since the dawn of time would be the front runners.
But no. Ted Heath, whose Conservative Government reigned from 1970 to 1974, topped the poll. In Ted's time house prices rose by an average of over 13 per cent per year in real terms (i.e.: after adjusting for retail price inflation).
The current government came in second place, with a real annual increase in house prices since 1997 of just over 10 per cent. The slowest annual real rate of increase was during Harold Wilsons Labour government between 1974 and 1976. Annual house prices actually fell in real terms by 13 per cent during this time.
London Does BestThe biggest winners since 1970 have been London homeowners, who have seen the value of their properties increase by over 40 times, from an average of £6,337 to £257,266.
The smallest rate of growth was in Scotland, where homes have increased in value by 23 times, from £4,723 to £110,266. Nationally, home ownership has risen from 45 per cent in 1964 to 70 per cent in 2005.
Commenting on the figures, Martin Ellis, Chief Economist at Halifax, said: "Homeowners have seen good rates of house price increases under both main political parties, just as they have seen real house price falls under both governments.
"What is very clear, however, is that home ownership has been a tremendous success over the past few decades. The majority of people in the UK want to own a home of their own."
Prime Ministers Since 1964
Harold WilsonIn office from October 1964 to June 1970Price of Home at start of term - £3,360Price of Home at end of term - £4,874Real average annual per cent increase within term - +1 per cent
Edward HeathIn office from June 1970 to March 1974Price of Home at start of term - £4, 874Price of Home at end of term - £10,766Real average annual per cent increase within term - +13 per cent
Harold WilsonIn office from March 1974 April 1976Price of Home at start of term - £10,766Price of Home at end of term - £12,415Real average annual per cent increase within term - -13 per cent
James CallaghanIn office from April 1976 to May 1979Price of Home at start of term - £12,415Price of Home at end of term - £20,004Real average annual per cent increase within term - +4 per cent
Margaret ThatcherIn office from May 1979 to November 1990Price of Home at start of term - £20,004Price of Home at end of term - £69,478Real average annual per cent increase within term - +4 per cent
John MajorIn office from November 1990 to May 1997Price of Home at start of term - £69,478Price of Home at end of term - £77,531Real average annual per cent increase within term - -2 per cent
Tony BlairIn office from May 1997 to DatePrice of Home at start of term - £77,531Price of Home at end of 2004 - £172,788Real average annual per cent increase within term - +10 per cent
(Based on average house prices).

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