CH Installation cost in 1974

[Yvonne]

It might be a long shot but, I'm hoping that there's some central heating installers out there with records that back as far as 1974.

The reason is, I'm disposing of the first house I ever bought ( in

1974) and in working out the capital gain for tax purposes, I need to cost up the enhancements that I did to it. The most significant enhancement was a complete CH installation in 1974, with a gas CH boiler and 7 radiators . This was in a your average 3 bed semi with a ground and first floor. I seem to recall it might have been around =A31,200. Would this be about right?

(( Out of interest, the previous owner used a single storage heater to warm the whole house. It was massive , ugly thing- about the size of a large chest deep freezer and sat in the lounge. It was supplied by off- peak electricity in the wee small hours, and gave up its heat during the day when the house was empty and I was out at work. Getting it out of the house was no small problem either. Glad I got shut of it :) ))

[The Natural Philosopher]

Yes.

[Derek Geldard]

I bought a 3 bed detached Wimpey house near York in 1972 and central heating was an optional extra that put £250 on the price of the house.

DG

[George]

Bit high in it? in 1974 you could buy a 3up 2down for that price in some areas. If I was to hazard a guess it would be around £700/750 mark?

[Yvonne]

I paid =A311,200 for the 3 up 2 down but presumably location made/makes a big difference. This is located in South Bucks in commuter land.

[Andrew Gabriel]

Just checked with my dad -- cost £200 to DIY install central heating in 1960, including the boiler.

[Doctor Drivel]

That would be a BIG system. More like £300-500. In 1974 you could buy a new top of the range Cortina for £1,200.

[Doctor Drivel]

By 1974 material costs had actually dropped. In the late 1960s, especially the early 1970s, boilers became cheaper and smaller. The materials in 1974 would have been about the same, or not much in it, as in 1960.

[Autolycus]

I can't find my records from 1974, but in late 75/early 76 I noted these prices of materials:

Potterton Netaheat 16/22 £161 Glow Worm Space Saver 75 £140

Single Panel Radiators approx £2.35/1000Btu/h (so around £120 for an average house) Double Panel £3.10/1000Btu/h (e.g. 27" x 45" Thorn £18.47 +VAT @ 8%)

15mm copper pipe 32p/metre Thermostatic radiator valves £5 each Motorised valves £10 Pump £28

Remember that inflation between mid 74 and end 75 was around 35%, and that prices since than have risen by a factor of 5 or 6.

So boilers are about the same price now, in real terms; pumps, radiators and trvs are cheaper.

[Peter Crosland]

How does this affect CGT? Have you been living in the property or renting it out?

Peter Crosland

[ARWadsworth]

I was told the 2 bed bungalow that I worked on today sold for £3000 as a new build in 1972 and gas CH was an optional extra for £300. Same owners still live there.

Adam

[Doctor Drivel]

I paid £228 in 1980 for one these.

[George]

I paid £11,200 for the 3 up 2 down but presumably location made/makes a big difference. This is located in South Bucks in commuter land.

I made mistake :-/

[Andy Hall]

You were had.

Didn't you get your staff discount?

[Owain]

Did they have YTS back then?

Owain

[Andrew Gabriel]

My dad remembers that TRV's were £15 in 1960, a fortune then. He was quite interested in using them, but they would have added 50% to the cost of the whole central heating system.

[Yvonne]

I lived in it for a couple of years initially and then rented it out whilst I lived alsewhere. Basically, with CGT you are taxed on the gain between the initial buying price and the selling price. This gain is reduced by:-

a) The proportion of the time you lived in it. b) Letting relief - basically the last 3 years of ownership. c) Indexation - to help offset some appreciation of the propertys value. d) Enhancements.

Enhancements are major modifications or developments eg conservatory, full double glazing and, in my case, full central heating.

The big let down is the indexation, as this is is nowhere near in step with the rise in property prices. It's more in step with the Consumer Price Index - which is even less than the real rate of inflation. So if you've had a rental property for over 30 years, there's quite a big tax bill to pay. In may case, the bill would get bigger after April

2008 under the 18% CGT rate. The current rate is 40% but at present I can use the allowance mentioned above.

If you are interested in CGT or IHT, visit

and you see lots of answers to questions about tax. Very useful site.

[Doctor Drivel]

They were available then, but so expensive they were not common. Sop rare many had never even heard of them. Danfoss invented them. Special orders. TRVs only came into common use with the Drayton around 1969/70. It is still basically the same today, even in looks.

[Doctor Drivel]

Matt, well Thatcher was in charge and price rose like fury..

I didn't buy a staff, as I can walk properly.

[Andy Hall]

Yes it was great. Nothing like a good bit of price inflation under the right circumstances.

Very good.