Price of Pint of Beer in UK: 2.5% Increase, £1.07 Postcode Lottery

Beer lovers hit with 2.5% pint price increase

The price of a pint of beer has risen by 2.5% since last year – but here’s where costs have fallen

A postcode lottery means there's a £1.07 price difference between the cheapest and most expensive pints depending on where in Britain you drink

By Olivia Feld, Digital Consumer Reporter

6th September 2018, 12:01 am

Updated: 6th September 2018, 2:23 am From The Sun available at

https://www.thesun.co.uk/money/7185489/pint-beer-price-risen-2-5-per-cent-since-2017/

BEER lovers will be gutted to learn that the average price of a pint at the pub has jumped by an average 2.5 per cent.

This means the price of a pint in the UK now comes in at £3.69, which is 9p more than last year, according to a survey by the The Good Pub Guide.

But a postcode lottery also means there's a massive £1.07 a pint price difference between the cheapest and most expensive pints depending on where in Britain you're drinking.

Most parts of the country have seen an increase in the price of a pint compared to last year with London the most expensive place to get a beer at an average of £4.44.

In 2017, Surrey was the priciest place to buy a pint, but this year prices in the county have fallen by 10 per cent to £3.97.

Fiona Stapley, editor of The Good Pub Guide, said: "The rising price of a pint is reflected by the fact that running a pub is becoming more and more expensive.

"One of the main killers is business rates (a business expense) which have doubled over the last few years with one top publican telling us that rates for one of his pubs have risen from £36,000 to £63,000 and for his other pub from £36,000 to £78,000.

"But also exorbitant rent prices, staff wages and general increases right across the food and drink industry make things extremely difficult for publicans."

In Suffolk and Surrey, for example, the price of a pint has dropped from £3.61 to £3.59 and from £4.40 to £3.97 respectively.

Shropshire and Herefordshire, meanwhile, came in as the joint cheapest counties to buy a beer at a wallet pleasing £3.37 a pint.

The survey also found that you can save cash by sampling some of Britain's home brew pub ranges.

These typically cost £3.26 a pint, which is 43p cheaper a pint than the national average.

The Good Pub Guide survey is compiled from data on more than 850 pubs that feature in the 2019 edition of the guide, which goes on sale for £15.99 today.

Postcode lottery creates £1.07 price difference

We compared the cost of a pint of beer around the world.  The table below shows the results:

1. Using information on the costs of running a public house (pub) in the article, and a demand and supply diagram, explain why the price of a pint of beer has increased in a lot of areas in the UK in the past year. (6)

2. What might be responsible for falls in the price of a pint of beer in Surrey and Suffolk? Show a demand and supply diagram to support your reason. (6)

3. The article says that a pub’s Home Brew range is cheaper than the mass market beer. Home Brew beer is made by small micro brewers. Why might pubs sell Home Brew beer from a micro-brewery at relatively low prices? (4)

4. Consider the table showing differences in the price of a pint of beer internationally. Using your economic knowledge explain what factors you think are responsible for differences in the price of beer internationally. (It will help if you make use of your internationally minded culturally aware knowledge of different countries to answer the question). (9)

Last updated 08:47, September 6 2018

QV has released its latest House Price Index, which shows that nationwide residential property values fell 1.6 per cent over the three months to August.

Property prices are falling, and those who have to sell or have problem properties are feeling the pain.

QV has released its latest House Price Index, which shows that nationwide residential property values fell 1.6 per cent over the three months to August.

In Auckland, prices were down 0.4 per cent in the quarter, in New Plymouth down 0.3 per cent, in Christchurch down 0.2 per cent and in Queenstown, down 1 per cent.

On an annual basis, prices are up 4.8 per cent on the same time a year ago. That annual rate is slowing - at the same time two years ago, the annual rate of growth was 14.6 per cent. In July this year, the annual rate was running at 5.2 per cent.

"Affordability constraints continue to change buyer behaviour. We're seeing an increase in demand for more affordable two-bedroom semi-detached units as well as apartments, particularly in our main centres. With population growth projected to continue to rise, I'd anticipate these types of properties will attract even more demand in future years, particularly in Auckland and Wellington City," said QV general manager David Nagel.

Good Pub Guide survey reveals Surrey prices fall by 10%

He said small provincial towns across the country were seeing strong growth and the southern part of the country, including Dunedin and Invercargill, was also increasing in price.

Overall, we're anticipating value growth to remain flat or steadily grow across most regions. The winter period has certainly taken the heat off the market and naturally, we'd expect the Spring period to inject new energy into the market.

Queenstown had the biggest price fall of the main centres in the quarter.

"The market is currently experiencing polarising forces with key market drivers such as low interest rates, population growth and lack of supply, being countered by tightening credit conditions and a range of Government policy initiatives aimed at cooling the market."  

"Spring is going to be a very interesting time for the residential property market as we see what unfolds when a few more buyers and sellers enter the market."

In Auckland, senior consultant James Steele said a drop in the number of investors in the market had opened space for first-home buyers.

"We are continuing to see a high proportion of properties come to market as price by negotiation as opposed to auction. With less demand, sellers are adjusting expectations and are more open to negotiation in order to get their property sold. In general this has caused prices to soften with the biggest variation from the peak shown in properties which are poorly presented or have other issues."

The premiums paid before the latest round of loan-to-value restrictions were introduced were no longer seen, he said.

"As expected, we have seen minor fluctuations in price with some downward pressure through the winter months coming from those who needed to sell. At this stage, any larger downward pressure on property prices is likely to come from regulatory change or wider economic risks."

In Wellington, senior consultant David Cornford said rising rents were pushing buyers into the market. "Two-bedroom, semi-detached units are selling particularly well, as they provide a more affordable option for young professionals or families. New builds or one and two bedroom modern apartments is also proving popular for the same reasons." 

1. The article mentions opposing (polarising) forces driving the market price. Using a diagram, explain why ‘low interest rates, population growth and lack of supply’ are likely to influence house prices and another diagram to explain why ‘tightening credit conditions and a range of government initiatives’ are likely to influence house prices. (4+4)

2. If overall house prices are falling then which of the two sets of forces outlined in 1 are prevailing? (2)

3. One government measure to cool house prices in New Zealand has been to ban foreigners from buying houses. Using a diagram, explain how this policy would work. (3)

4. There are arguments for and against banning foreigners from buying houses in New Zealand. Write a speech you would give as a member of parliament either for or against this measure as it goes through to the statute books. (10)

5. Explain how the market for furniture and white goods might be affected by the rise in house prices in New Zealand. (3)

6. Explain the effect that a rise in the divorce rate would have on the housing market in New Zealand. (3)

7. New Zealand has a very beautiful natural environment. Explain how government restrictions on where firms can build new houses might end up pushing up the price of houses. (3)

8. David Comford says that rising rents are pushing people into the house buying market. This is all the market for accommodation. What should happen to the price of accommodation in different sectors of the market if people move between the markets like this? (3)