14 Mar

House prices outpacing owner’s earnings

House prices outpacing owner’s earnings

The incomes of property owners have been revealed in new research from a key home loan provider.

Halifax discovered that house prices have outpaced owners' earnings in 119 areas, with 17 per cent of all local areas seeing the average house prices rising by more than average pay.

According to the study, the largest gap between increasing property values and earnings was found in Haringey in London. The borough saw house prices rose by an average of £139,803 over the last 24 months, in contrast to home earnings of £48,353 during the same two years.

"Buoyancy in the housing market over the past two to five years has resulted in homes increasing in value by more than total take home earnings for the average homeowner in many areas, though mostly in southern England," explained Martin Ellis, housing economist at the Halifax.

He added: "While it’s no longer unusual for houses to earn more than the people living in them in some places, there are clearly local impacts. Home owners in these areas can build up large levels of equity quickly, but for potential buyers whose wages have failed to keep pace, the cost of buying a home has become more unaffordable during that time."

There were some regions were the earnings did overtake house prices increases – in the North East, Scotland and Northern Ireland.ADNFCR-1222-ID-801833490-ADNFCR

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