What is £500 in 1991 worth today?

Kemiera19

Hi All,

New to posting but have been lurking for months.

Got a question for you bods but didn't really know where to stick it so I thought I'd start here........

If someone paid £500 for a deed of right of way in 1991 and I now want to create a similar deed with the same Grantor, how can I convert the 1991£500 into todays money as a reasonable figure to pay?

Get it?

phlash

Using the retail price index, from 1991-2006, the value in 2006 would be £741.96.
http://measuringworth.com/calculators/ppoweruk/result.php?use%5B%5D=CPI&year_late=1991&typeamount=500&amount=500&year_source=1991&year_result=2006

If you used house price inflation over the past decade, it would be somewhere near £1500. (~204% acc to BBC News)

Nice indication of how much house prices have run away from the 'norm'!

Using other measures until 2005:

£719.14 using the retail price index
£717.99 using the GDP deflator
£882.99 using average earnings
£995.07 using per capita GDP
£1,043.06 using the GDP

Kemiera19

Either way that's good to know, I was worried we would be looking at thousands, say about 5K, so armed with this info I might try and do a deal.

Many thanks for your help.

phlash

Glad I could help.

Romani_Ite_Domum

It would be based on added value for you and decreased value for the grantor. If the ROW increased your property value by 10% and decreased the grantors by 5 % You would be looking to pay in the region of 7.5% if both properties were similar value.
If the grantor has already one ROW and you are adding onto that, the decrease then of the grantor may not be as much as 5% so you would be looking to pay less than £500 plus a 204% increase as phlash has pointed out.

It would be worth looking at HPI for your specific area though.

CB1979_2

also I'd look at how much of percentage that £500 was compared to the house price.

if the house was only worth £50k at that time, then the ROW cost 1%, but if the price is now £200k, then I'd expect the same percent to be applied.