An interesting article by Sainsbury’s Money Matters, The Generation Game explored the difference between three generations spanning 40 years, their buying habits and lifestyles. These three groups comprise of Baby Boomers those people who were born from the mid-1940’s to the early-mid 1960’s, Generation X those born between the 1960’s and the very end of the 1970’s and the Millennials those born from the early 1980’s to the mid 1990’s their study of this generation was based on research produced by KMPG who also looked at the most recent generation as well, those less talked about, Generation Z, those people born in the noughties.
The most significant things about the baby boomers are that they were the post-war generation, they had much influence over politics, they had free grants and enjoyed low-cost house prices. It’s these house prices, pension returns and more jobs that have made this the most wealthy generation in some people’s view. The average shopping basket for this generation was videos, fish fingers, blankets and sheets and corned beef.
Generation X is best known for working and playing hard, with a much lower birth rate than those baby boomers, they are also known as Gen Bust and helicopter parents to Gen Z. This generation bought cassettes, a fridge, a microwave and enjoyed Smash.
The Millennials, also known as Generation Y is a generation who has to keep connected. They demand much more from employees than Generation X. There are around 13.8 million people who make up Generation Y in the UK. They also have a much better work-play balance, with a large percentage of their disposable income going towards entertaining themselves. Most likely to put in their shopping basket: Netflix subscription, Duvet, CD players and Coffee Pods.
So how about the difference in house prices?
Average house prices in North London just before the second World War were around £750, which the equivalent of £50,000 in today’s money, a property in that area will now cost around £211,000.*
This is partly due to home ownership increasing from around 30% to 50% from the early 1950s to the 1970’s and is now closer to 65%, which has pushed up house prices. *
Despite popular belief that it was much easier to buy a property back in 1950’s, the average cost was around £2,000 but wages in comparison were much lower back then, around £10 a week, so even then people found it hard to buy a property. *
Government-funded schemes such as the Help to Buy scheme are helping buyers by lending them up to 20% of the purchase price or up to 40% in London where house prices are lower. The Shared Ownership scheme could enable a first-time buyer to buy as little as a 25% stake in a property or as much as 75%. If you would like to find out more about these schemes then why not pop into your local branch of Intercounty or give our team a call.
*22/08/2016According to https://www.sunlife.co.uk/blogs-and-features/the-price-of-a-home-in-britain---then-and-now