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
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