The rise of inflation has seen the cost of everything heighten in the UK, no more so than the property market.At Property Rescue we’re helping more people than ever before sell their homes
due to financial constraints.In just 12 years the cost of property has increased 46%, costing now on average £227,871, but what if that inflation rate hit the nation for everyday items too?We commissioned a study to discover how the UK would cope with a similar price hike, and it produced worrying results.
The Cost of Your Weekly Shop
It’s estimated that the cost of a weekly shop would jump from £53.20 to an approximate £207, resulting in around £824 per month - almost half the average monthly wage post tax.Based upon the Office for National Statistic figures on the price of goods in 2006, the likes of biscuits, potatoes and cheese would all be significantly higher in cost than they are today, while figures also show that inflation rates would take the price of sausages to a staggering £10 per pack of six.A kilogram of rump steak would also rise to £36.29, while even healthy eating would price out consumers at £4.38 per kilogram of bananas.Interestingly, some items are actually more expensive today than they would be if property inflation rates were added.The increased tax on alcoholic and sugary goods, means that the cost of a pint of lager and bags of sweets are more expensive today than a prospective 46% inflation rate from 2006 prices.A packet of biscuits (150-250g) would be approximately 15p more expensive, while a branded bar of chocolate would cost around the same price, despite the recent hikes.
The Cost Compared to Days Gone By
Look back a little further, and the rising inflation would cause significant difference to our weekly shop.If inflation on property was to rise at the same rate as it has since 1973, the cost of goods would be staggering. The table below charts how much you’d be paying today compared to generations gone by…
|Item||Price in 1973||Price Today||Housing Inflation Price||Price Rise|
|Rump steak (kg)||£1.99||£16.02||£36.29||226.53%|
How Would this Affect UK Shoppers?
If the figures were to hit supermarkets today, almost half of Brits would struggle financially to pay their weekly shop and a third would need help with their shopping.A survey, put together by Property Rescue, found that the likes of rump steak and sausages would be completely removed from diets, with only 6% and 3.6% of people admitting they would still purchase those goods respectively.
Where Would Be Most Affected?
Those in Northern Ireland would be worst off, with over half of people (52%) in the country requiring financial help and only one in 10 being able to afford the price rise comfortably.London would be the best off region, with a quarter of those living in the capital being completely unaffected by a weekly shop jumping to over £200 per week.
|Region||Would Require Financial Help (%)|
|Yorkshire & Humber||33|
Over a third of most regions outside the capital would require financial help if the cost of goods were to rise in such a way, and it would hit some harder than others.
How it Would Affect Generations
Overall, the younger generation would suffer the most if groceries were to raise considerably. Approximately two thirds of all 25-34-year-olds would struggle or need financial help, compared to one in five over-55s who would remain comfortable.The least affected generation would be the 35-44s, which remains true to the average wage structure in the UK, with both males and females hitting their peak average salaries during these years.
|Age Range||Would Comfortably Cope (%)||Would Require Financial Help (%)|
The study also revealed that women would be 10% more likely to struggle or need help financially compared to men, very much in line with the recent salary report
highlighting a 9.8% median pay gap.Over two thirds of women would struggle or need help according to the survey compared to 58% of men.However, almost all men and women agreed that the £10.26 cost of sausages would be far too expensive.