The £10 pint and £1,448 duvet - This is what things would cost if they had risen at same rate as house prices

The eye-watering cost of living if prices matched property inflation has been revealed – and it’s no cause for a toast.

Wednesday, 29th September 2021, 10:26 am

If the cost of beer had increased at the same rate as property inflation, the average pint would be £9.29, almost two and a half times more than the actual average cost of £3.86.

That’s according to research by an app-based bank into what everyday essentials would cost if they had followed the same inflation path as property prices, from a £66 game of Monopoly to a £1,448 duvet.

After a price increase of 8.9% over the last year, the average property in the UK is currently valued at £254,624, a huge 5,704% increase from 50 years ago, when the average UK home cost £4,387.

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If beer prices matched house price inflation there would be little reason to cheer

A pint of milk would cost almost seven times more at £2.90 per pint, says the research from Atom Bank, with oranges and bananas £8.70 and £9.29 per kilogram.

The average gallon of petrol would cost us £19.73 ,compared to the current £5 average, while a standard version of the board game Monopoly would come in at £66.75, more than three times its current price tag of £20.

If wages had followed the same path, the average Brit would currently be earning £96,579 - more than three times the actual average.

With this in mind, securing a mortgage in the current buoyant property market can seem like a daunting task but there is hope and help on hand.

Paul Elliot, head of mortgages at Atom bank, said: “Demand for property is at an all time high with the pandemic making many of us reassess our priorities and put more value on things such as outdoor space and room for a home office. The rise of flexible and hybrid working has also led to cross-country movement as more people are moving out of the city now they aren’t tied to commuting into an office everyday.

“The market's inability to meet supply has led to property price increases with housing prices at a record peak. As the stamp duty holiday peters out, the initial urgency that was present will naturally slow, leading to a reduction in the unprecedented growth experienced.”

For those on a mission to buy a home in 2021, it is important to get your budget in order.

Paul said: “Before considering moving home or buying your first home, it’s crucial to work out what your budget is, taking into account the deposit you will need alongside extra costs, from solicitors fees to van hire.

“Even in the current property market, it is absolutely possible to get on the property ladder with the right management of your finances. Start by creating a budget planner to keep track of your outstanding financial commitments and your disposable income: the more you know about your outgoings, the more control you can have over your finances, meaning you can save for a deposit more efficiently.”

Other tips include doing your research before making an offer and putting yourself in the best position by not being in a chain.