Walsall Inflation

Is it possible that inflation could benefit landlords in Walsall?

For those who are old enough to recall the 1970s, memories may include fashion trends such as bell-bottom trousers, frayed jeans, and disco glitter balls, as well as economic challenges like HYPER-INFLATION. Presently, with inflation rates at 10.4%, some may long for the past few years of sub-2% inflation.

However, during the 1970s, the UK experienced a decade marked by sustained double-digit inflation for seven of its ten years. Inflation was a significant issue in the UK during the 1970s, with the average annual inflation rate reaching 12.3% per year.

In fact, prices surged by as much as 25% in 1975 alone, reflecting the extent of the inflationary pressures faced by the economy during that decade.

The high inflation of the 1970s in the UK was attributed to various factors, such as the quadrupling of oil prices during the 1973 Oil Crisis (which may sound familiar), powerful unions, a high level of growth and investment in the 1950s and 1960s, all of which made it easier for inflationary pressures to build up in the 1970s. The property market was not exempt from these inflationary pressures either.

Between the beginning of 1970 and the end of 1979, the average price of a house in Walsall increased significantly, rising from £3,758 to £19,465.

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Walsall Rent Inreases Outstrips Inflation Since 2005

Millennials were born between the mid 1980’s and late 1990’s making them between the age of around 22 to late 30’s. They are the imaginative, artistic youngsters who grew up with the newest tech and computers and who are huge enthusiasts of music festivals, gourmet pizzas, emoji’s, selfies and old school nostalgia AKA…generation rent.

Countless Millennials have discovered that renting is a good choice for their shelter and accommodation needs without the hassle that comes from buying a home. Nonetheless, that is not the only reason they don’t buy property. When they should be concentrating on their profession, putting down roots and starting a family, Millennials are still going through the pressures and constraints on their finances of student loan liabilities whilst, at the same time, finding it hard-hitting to pay rent.

The hot topic at the moment is the cost of renting, as both our main political parties have seen mileage in wooing these Millennial Generation Renters. The average rent in Walsall is currently £618 per month making this a big-ticket item on the monthly budget. I was inquisitive to find out exactly how much Walsall Millennials will spend on rent by the time they reach their mid 30’s. The average age people leave home in the UK is 22; so looking at a Walsall 22-year-old (or Millennial) who left home in 2005 then between 2005 and today that Walsall Millennial will have shelled out £90,348 in rent.

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