The average house prices in 2005 was £123,815, compared with £285,000 in 2024 – a 130% rise
The average UK house price has more than doubled over the past two decades, while annual rental prices were around a fifth 20 years ago of what they are today, according to an analysis.
Scottish Widows looked at how financial challenges for households have evolved, to mark its 20th annual retirement report, which first launched in 2005.
The impact of inflation on eroding spending power means a pound buys only just more than half (53%) of what it could when Scottish Widows launched its first report in 2005, according to researchers.
The average house prices in 2005 was £123,815, compared with £285,000 in 2024 – a 130% rise.
But rents have increased at a much faster rate, researchers found.
The average rental property cost £2,889 per year in 2005 but that has since surged to five times the 2005 total, at £14,676.
With wages having lagged behind some rises in living costs, this has brought challenges for people when factoring in saving for later life, Scottish Widows added.
Average annual full-time earnings for employees have risen by nearly 53% since 2005, showed the research.
People are also retiring later in life. Scottish Widows said that in 2005, men were aged just over 64 on average and women were aged just over 61 typically when they retired – but this has since increased to just over 65 for men and almost 64 for women.
Scottish Widows’ research shows that 54% of people expect to work at least seven years longer than they would like.
Major changes have happened in the pensions system over the last 20 years, including automatic enrolment into workplace pensions and the pension freedoms for over-55s.
