Showing values based on RPI, CPI and Average Salary indexes.
FlatOn average you would need a minimum £30,754 salary in 2018.
In 1995 you would need (converted to 2018 money) £16,494.
The mortgage payment would be around £613 in 2018.
In 1995, the mortgage payment would be around £606 (in 2018 money).
TerracedOn average you would need a minimum £33,271 salary in 2018.
In 1995 you would need (converted to 2018 money) £16,939.
The mortgage payment would be around £664 in 2018.
In 1995, the mortgage payment would be around £622 (in 2018 money).
Semi-DetachedOn average you would need a minimum £42,689 salary in 2018.
In 1995 you would need (converted to 2018 money) £21,814.
The mortgage payment would be around £851 in 2018.
In 1995, the mortgage payment would be around £801 (in 2018 money).
DetachedOn average you would need a minimum £84,364 salary in 2018.
In 1995 you would need (converted to 2018 money) £46,237.
The mortgage payment would be around £1,683 in 2018.
In 1995, the mortgage payment would be around £1,697 (in 2018 money).
Below is a table showing the average sold prices in 2018 and 1995 in Birmingham, West Midlands.
| Property Type | Price in 2018 | 2018 Price in 1995 Money | Price in 1995 | 1995 Price in 2018 Money |
|---|---|---|---|---|
| Flat | £144,723 | £77,014 RPI | £41,305 | £77,620 RPI |
| Terraced | £156,569 | £83,318 RPI | £42,420 | £79,714 RPI |
| Semi-Detached | £200,891 | £106,904 RPI | £54,628 | £102,656 RPI |
| Detached | £397,008 | £211,267 RPI | £115,788 | £217,586 RPI |
Below is a table showing the average mortgage costs in 2018 and 1995 in Birmingham, West Midlands. These are based on a 85 percent loan to value mortgage using the actual interest rates in the respective years.
| Property Type | Repayment 2018 | 2018 repayment in 1995 Money | Repayment in 1995 | 1995 repayment in 2018 Money | Interest Only 2018 | 2018 interest only in 1995 Money | Interest Only in 1995 | 1995 interest only in 2018 Money |
|---|---|---|---|---|---|---|---|---|
| Flat | £613 at 2% | £326 RPI | £322 at 8.125% | £606 RPI | £241 at 2% | £128 RPI | £280 at 8.125% | £526 RPI |
| Terraced | £664 at 2% | £353 RPI | £331 at 8.125% | £622 RPI | £261 at 2% | £139 RPI | £287 at 8.125% | £540 RPI |
| Semi-Detached | £851 at 2% | £453 RPI | £426 at 8.125% | £801 RPI | £335 at 2% | £178 RPI | £370 at 8.125% | £695 RPI |
| Detached | £1,683 at 2% | £895 RPI | £903 at 8.125% | £1,697 RPI | £662 at 2% | £352 RPI | £784 at 8.125% | £1,473 RPI |
Here are the minimum salaries required to buy an average property in 2018 and 1995 in Birmingham, West Midlands.
| Property Type | Average salary required in 2018 | 2018 average salary required in 1995 Money | Average salary required in 1995 | 1995 average salary required in 2018 Money |
|---|---|---|---|---|
| Flat | £30,754 | £16,366 RPI | £8,777 | £16,494 RPI |
| Terraced | £33,271 | £17,705 RPI | £9,014 | £16,939 RPI |
| Semi-Detached | £42,689 | £22,717 RPI | £11,608 | £21,814 RPI |
| Detached | £84,364 | £44,894 RPI | £24,605 | £46,237 RPI |
Here are the estimated costs of some common products in 2018 and 1995 money.
| Product | In 2018 Money (RPI) | In 1995 Money (RPI) |
|---|---|---|
| Beer | £2.34 | £1.24 |
| Milk (1l) | £0.60 | £0.32 |
| Bread | £0.65 | £0.35 |
| Chicken Breast (1kg) | £3.79 | £2.01 |
| Bottled Water (1.5l) | £0.63 | £0.34 |
| Petrol Gallon (4.54l) | £3.79 | £2.02 |
| Small Hatchback Car | £12,018.50 | £6,395.64 |
Using a combination of Land Registry sold house price data spanning over 20 years, Office of National Statistics RPI (Retail Price Index) data and the Bank of England's records on mortgage rates we have produced this tool to pit to years against each other to see if people are really better off.
By selecting a city and choosing to years to compare we will find the average prices for the various property types, find the relative mortgage cost in the relevant year, extract household income and cost of living data - then - adjust for inflation to show the real costs to make comparison easy!
It is a common argument that it was easier for people to get on the housing ladder in the past. For example people graduating in the since 2003 would find it more difficult to get on the property ladder compared to someone graduating in 1995.
We can test this theory by checking what the price of a first-time buyer's likely purchase would be, the interest rate, the mortgage payment from 1995 and from 2003. Taking it one step further we can using our inflation calculator to convert those prices using RPI data so the numbers are more meaningful as they can be directly compared.
So, let's take London as an example and compare 1995 with 2003.
The result produced shows that in 1995 an average £17,000 salary is needed to by the average flat. However, in 2003 you would need £38,000. This means just over double the salary is required to get on the housing ladder on average in London is a span of eight years.
Looking further, the average mortgage payment in 1995 for a first-time buyer in London would be £625. In 2003, the mortgage payment would be £1,064. So, even though interest rates did reduce (from 8 percent to 5 percent) the monthly payment is still nearly doubled.
This tool can create comparisons such as this for hundreds of the UK's towns and cities and for any year spanning from 1995 to the current year.
You can get started above or try some of the examples below: