Money in the 1950s and 1960s
House Prices in the 1950s would shock people who are just starting on the property ladder today. We all know that property has risen in value over the years but by just how much is enlightening. Yet despite the increases in prices, except for a few years, housing has become more affordable for most of us. At the end of World War 2, the UK average price of a 3 bedroom semi detached house was around £1,000 ($1500). This rose to around £5,600 in 1971, £24,000 in 1981, £62,000 in 1991 and £101,000 in 2001.
|
1950's
|
1971
|
1981
|
1991
|
2001
|
| £1,000 | £5,600 | £24,000 | £62,000 | £101,000 |
Over the period from 1971 to 2000, the proportion of owner occupied houses rose from 50% to 69%. So, although it is harder for some to buy a house now, on average in the UK, babyboomers had it harder when trying to buy than people starting out now.
Food
Nothing illustrates the effects of inflation more than the price of food. The table below shows how prices have changed. Prices are in decimal pence.
| 1950 | 1971 | 1991 | 2001 | 2006 | |
|---|---|---|---|---|---|
| 500g beef (sirloin without bone) | 12 | 58 | 296 | 321 | 475 |
| 250g cheddar cheese | 3 | 14 | 86 | 128 | 128 |
| 500g margarine | 5 | 7 | 45 | 80 | 59 |
| 250g butter (home produced) | 6 | 15 | 62 | 79 | 88 |
| Half dozen eggs (size 2) | 11 | 11 | 59 | 86 | 94 |
| 125g loose tea | 5 | 9 | 59 | 83 | 60 |
| 1 kg granulated sugar | 5 | 19 | 66 | 57 | 72 |
| 800g white sliced bread | 2 | 10 | 53 | 51 | 48 |
| 1 kg old potatoes | 1 | 4 | 35 | 89 | 37 |
| 1 pint pasteurised milk | 2 | 6 | 32 | 37 | 32 |
In the 1950s and 60s, the national debt was always a worry for government. The balance of payments was affected by currency devaluations and strikes etc. Debt repayments included recent borrowings as well as repaying the USA for borrowings just after World War II. The UK has only recently paid off the last of its World War II loans from the US. Loans for World War I remain outstanding and nowadays are considered as moribund.
On 31 December, the UK will make a payment of about $83m (£45.5m) to the US and so discharge the last of its loans from World War II.
