Platinum Jubilee: Inflation to house prices – how the UK economy has changed since 1952 | Personal Finance | Finance
According to research carried out by Nous.Co, the largest price hike the nation has seen since the Queen’s coronation have been in house prices. Overall, the cost of purchasing property has gone up by 18 percent from an average £1,891 to almost £350,000. In other shocking price rises, petrol now costs around 49 times more than it did in 1952 and a pint of milk is 26 percent more. However, there have been some positive changes to the economy since Queen Elizabeth II ascended to the throne.
Seventy years ago, the average take-home pay was £9 a week, while now it is £556, according to Nous.co. Furthermore, pensions have risen from £1.50 a week in 1952 to £185 today.
On the results, Greg Marsh, the CEO and founder of Nous.co, said: “Despite the dreadful burden millions are facing from the cost-of-living crisis, we really are still doing pretty well compared to our grandparents.
“The big challenge now is to do everything we can to protect the hard-won lifestyles that have been achieved during the Queen’s reign.”
Currently, inflation in the UK sits at nine percent which is similar to what it was when the Queen was crowned.
As the rise in inflation exacerbates the existing cost of living crisis, many will be looking back to see how the UK managed to pull itself out of a similar dire financial situation.
Speaking exclusively to Express.co.uk, Annabelle Williams, Personal Finance Expert at Nutmeg, shared what Britons can learn.
Ms Williams said: “It’s unrealistic for people to return to 1950s standards of living but simplifying your finances through incremental changes can help. Clear financial clutter by ending contracts that aren’t really useful and gradually adjust to a simpler lifestyle.
“Going all-out and saying you’re not going to buy anything you don’t need ever again may work for some, but for most people it’s like putting a banana skin on the pavement ahead.
“Saving for goals first rather than turning to debt in the manner of the 1950s can be beneficial in the long run. When money is tight but you still want to save; set small, specific and realistically achievable goals that you can work towards.
“Break down the overall amount needed into smaller chunks by setting savings goals for each month, starting with smaller targets and incrementally making them bigger.”
The financial expert also noted that the ideas of saving and investments Britons have today were not applicable back then, so those concerned about their finances have multiple options to help them which their 1952-counterparts did not.
She said: “There have been huge changes in the way Britons save and invest since the 1950s. The introduction of the first credit card in 1966 was transformational and fundamentally altered the way that we see money, spending and savings.
“Credit cards allow people to spend money they haven’t yet earned, and although that carries negative connotations there’s a ‘good side’ to debt – it means people don’t need to have existing wealth to improve their lives.
“In the 1950s, before credit and loans were readily available, people couldn’t improve their standard of living in the present because some things would take years to save for, or would only be available to people who could raise the money from family or friends.”
Since the Queen first started her reign, the role of women in society has changed dramatically when it comes to money and status.
On how the country has changed economically and socially since 1952, Jess McGuigan, a wealth planner at wealth management firm Kingswood, explained: “One of the key differences that has occurred in personal finance since the 1950’s is the evolution of a woman’s role within families and the wider economy as a whole.
“Women often had a weekly allowance from their husband and would pride themselves on being able to budget their expenses, without having to worry about saving as this was the man’s responsibility within the household.
“At the time, there was no real need for women to have any involvement in future financial planning. Nowadays, things are much different.
“People are getting married later in life and more than half of marriages end in divorce, according to research, which means that it’s more important than ever for women to be confident, independent and in control of their own finances and not fully reliant on their partner.
“Women are typically better savers than men – perhaps a habit carried over from when they had to budget their allowance back in the 50s, however, women are typically more risk averse, with a larger ratio not investing and preferring to keep their savings in low returning cash-based deposits, which increases the risk of these savings being eroded by inflation over time.”