Have a sporting chance of getting on the property ladder

Another World Cup is upon us and England fans will be on the edge of their seats as they watch and wait to see if the nation can undo 52 years of hurt and win the tournament for the first time in 1966.

We are now living in a very different environment to when Moore, Hurst and co. led England to its only World Cup, both in terms of football itself and the wider economy.

The average property back in June 1966 was just £3,558, compared with the latest Nationwide House Price Index which has put prices at £213,618.

The typical weekly earnings back in 1966 were £30.30, when you combine both male and female salaries, according to the Office for National Statistics (ONS), amounting to £1,575.60 over a year.

With average property values in June 1966 at £3,558, that suggests an average house price to income ratio of 2.26.

In contrast, the average weekly salary in March 2018 was £484, according to ONS data, giving an annual wage of £25,168.

But with property prices now at £213,618, this gives a house price to income ratio of 8.48.
This shows how wages haven’t kept up with house prices over the past 52 years, suggesting just how much harder it has become to get onto the property ladder before you consider issues such as supply of property and stamp duty costs.

But, as in football, you can only play against who is in front of you.

Those who purchased in the 1960s will highlight that interest rates were higher at 7% at the end of the World Cup in July 1966, compared with 0.5% now.

To have the best sporting chance of getting on the property ladder, it is a good idea to speak to your mortgage adviser who can find a deal that is right for your needs and for whoever else is in your team.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE