As house prices rise at an astonishing rate and earnings remain more or less stagnant, the latest research from estate agent comparison site, GetAgent.co.uk, reveals where in Britain houses have actually earned more than the average wage over the past year.
The current average annual income in Britain is £31,620. At the same time, GetAgent’s analysis shows that the average house price in Britain has increased by almost 10% in the past year, a jump of £24,544 in just 12 months.
This means that the average person has earned £7,076 more than their property despite the pandemic house price boom.
However, there are 131 areas of Britain where houses have earned more than the average annual income; in some cases, much more.
In South Hams, Devon, the average house price has increased from £345,242 to £424,072 in the past year, a rise of £78,831. Meanwhile, the average salary in South Hams sits at £28,711, meaning local houses have out-earned the average person by an astonishing £50,120.
In the London borough of Islington, house prices have increased by £89,575 while the average salary is £46,146 meaning houses have brought home £43,429 more than their average owner; while in North Devon, annual price growth of £65,210 and an average income of £23,285 means houses have earned £41,925 more than the average income.
Houses have also earned more than people in Cotswold (£32,800), Uttlesford (£32,139), Maldon (£31,065), Richmond-upon-Thames (£30,903), Torridge (£30,855), the City of Westminster (£27,363), and East Hampshire (£26,957).
Founder and CEO of GetAgent.co.uk, Colby Short, commented: “There are no less than 131 areas of Britain where house prices have outperformed the average income over the last 12 months, which really demonstrates how hot the market has been running pretty much since the start of the pandemic.
Of course the flipside to this positive market trend is the ever growing issue of affordability and this has only grown larger due both upward house price growth as well as the fact that earnings simply haven’t kept pace.
Both factors have tipped the scales of affordability further out of kilter for the average homebuyer, but for those that have secured a foot on the ladder, the fact their home is earning as much, if not more on a yearly basis will be warmly welcomed.”