Estate agent comparison site, GetAgent.co.uk, has looked at how current market conditions have impacted homeowners financially over the last year and how house price growth compares to the average income.
GetAgent.co.uk used house price data from the latest UK house price index and the latest data from the ONS employee earnings in the UK to compare the net wage across the UK with the change in house price values.
The data shows that there are four areas of the UK where houses have earned their owners the average wage for the area, and then some, despite the remaining prevalence of Brexit uncertainty.
The best place to live in the UK over the last year is North Devon, with the average house price increasing from ยฃ221,095 to ยฃ245,504 in the last year – a jump of ยฃ24.410. This jump is ยฃ5,810 more than the average annual net income of ยฃ18,599 and a 131% wage increase for homeowners in the area.
The Derbyshire Dales is the second best place with annual house price growth at ยฃ31,058 compared to an average wage of ยฃ24,796. In the Cotswolds, homeowners have seen property prices increase ยฃ28,917, while the average wage is just ยฃ24,641.
Purbeck is the fourth and final area of the UK to see house price growth higher than the average wage, with prices up ยฃ20,847 compared to a wage of ยฃ18,145. Forest Heath, Rochford, Forest Dean, Blaenau Gwent, Redditch and Harborough have also made their owners between 77% and 90% of the average salary in a year.
London house prices have fallen by nearly ยฃ6,000 in the last year, 18% of the average wage in the capital. However, if you live in Haringey, Southwark or Camden, look away now.
The three London boroughs are the only areas to have seen prices plummet by more than the average wage in the borough. Haringey has seen a drop of ยฃ43,906 in the last year with an average wage of just ยฃ27,346. Prices in Southwark have dropped ยฃ42,822 compared to a wage of ยฃ29,191 and Camden has seen a drop of ยฃ52,063 with a wage of ยฃ43,244.
Eight other London boroughs have seen 50% or more of the average annual wage wiped off by house price decline in the last year and outside of London this stretches to another 13 areas. The worst of which is Tandridge where prices have dropped by ยฃ8,922, 71% of the average wage yearly (ยฃ31,067).
Founder and CEO of GetAgent.co.uk, Colby Short said, โPainful reading for many with the result of prolonged market uncertainty essentially wiping out 50% or more of their yearly earnings. Those in Haringey, Southwark and Camden, in particular, wonโt be best pleased as they have seen the value of their property fall faster than they can earn money.
“Thankfully, those already on the ladder will only feel this pinch on their pocket if they are looking to sell and with the long-term durability of the UK property market, they could see a reversal in fortunes by the time they do.
“As always, itโs not a story of doom and gloom everywhere and some houses have actually been hard at work for their owners earning a healthy salary of their own over the last year.โ
Annual house price increases above the average wage level and next best areas as a percentage of the average wage | ||||||
Location | Average Annual Net Salary | Average House Price (April 2018) | Average House Price (April 2019) | House Price Growth (ยฃ) | Difference between Salary & AverageHP growth | House price growth to wage (%) |
North Devon | ยฃ18,599 | ยฃ221,095 | ยฃ245,504 | ยฃ24,410 | ยฃ5,810 | 131% |
Derbyshire Dales | ยฃ24,796 | ยฃ252,263 | ยฃ283,321 | ยฃ31,058 | ยฃ6,263 | 125% |
Cotswold | ยฃ24,641 | ยฃ355,520 | ยฃ384,438 | ยฃ28,917 | ยฃ4,277 | 117% |
Purbeck | ยฃ18,145 | ยฃ310,688 | ยฃ331,535 | ยฃ20,847 | ยฃ2,702 | 115% |
Forest Heath | ยฃ23,077 | ยฃ198,385 | ยฃ219,249 | ยฃ20,864 | -ยฃ2,213 | 90% |
Rochford | ยฃ25,209 | ยฃ332,350 | ยฃ353,447 | ยฃ21,097 | -ยฃ4,112 | 84% |
Forest of Dean | ยฃ21,279 | ยฃ225,054 | ยฃ242,474 | ยฃ17,420 | -ยฃ3,860 | 82% |
Blaenau Gwent | ยฃ18,224 | ยฃ84,593 | ยฃ98,956 | ยฃ14,363 | -ยฃ3,861 | 79% |
Redditch | ยฃ19,419 | ยฃ199,782 | ยฃ214,930 | ยฃ15,148 | -ยฃ4,270 | 78% |
Harborough | ยฃ26,432 | ยฃ274,373 | ยฃ294,721 | ยฃ20,348 | -ยฃ6,084 | 77% |
United Kingdom | ยฃ23,821 | ยฃ225,750 | ยฃ228,903 | ยฃ3,153 | -ยฃ20,668 | 13% |
ย | ย | ย | ย | ย | ย | ย |
Annual house price decline above average wage level | ย | ย | ||||
Location | Average Annual Net Salary | Average House Price (April 2018) | Average House Price (April 2019) | House Price Growth (ยฃ) | Difference between Salary & AverageHP growth | House price growth to wage (%) |
Haringey | ยฃ27,346 | ยฃ555,449 | ยฃ511,543 | -ยฃ43,906 | -ยฃ16,560 | -161% |
Southwark | ยฃ29,191 | ยฃ517,934 | ยฃ475,052 | -ยฃ42,882 | -ยฃ13,691 | -147% |
Camden | ยฃ43,224 | ยฃ866,438 | ยฃ814,375 | -ยฃ52,063 | -ยฃ8,839 | -120% |
ย | ย | ย | ย | ย | ย | ย |
Largest house price decline as a percentage of average wage outside of London | ||||||
Location | Average Annual Net Salary | Average House Price (April 2018) | Average House Price (April 2019) | House Price Growth (ยฃ) | Difference between Salary & AverageHP growth | House price growth to wage (%) |
Tandridge | ยฃ31,067 | ยฃ448,006 | ยฃ425,931 | -ยฃ22,075.26 | ยฃ8,992 | -71% |
Mole Valley | ยฃ30,638 | ยฃ497,835 | ยฃ476,361 | -ยฃ21,474.00 | ยฃ9,164 | -70% |
Chichester | ยฃ23,845 | ยฃ381,762 | ยฃ365,101 | -ยฃ16,661.10 | ยฃ7,184 | -70% |
West Oxfordshire | ยฃ23,174 | ยฃ332,236 | ยฃ316,470 | -ยฃ15,765.79 | ยฃ7,408 | -68% |
North Hertfordshire | ยฃ26,131 | ยฃ352,785 | ยฃ335,171 | -ยฃ17,613.78 | ยฃ8,517 | -67% |
North Dorset | ยฃ21,043 | ยฃ262,533 | ยฃ248,872 | -ยฃ13,660.55 | ยฃ7,383 | -65% |
Harrogate | ยฃ25,180 | ยฃ287,109 | ยฃ271,018 | -ยฃ16,090.80 | ยฃ9,090 | -64% |
New Forest | ยฃ21,842 | ยฃ341,973 | ยฃ328,254 | -ยฃ13,718.90 | ยฃ8,123 | -63% |
Rushmoor | ยฃ26,160 | ยฃ289,963 | ยฃ274,270 | -ยฃ15,693.65 | ยฃ10,466 | -60% |
Bracknell Forest | ยฃ25,840 | ยฃ344,939 | ยฃ329,844 | -ยฃ15,094.66 | ยฃ10,745 | -58% |
ย | ย | ย | ย | ย | ย | ย |
London boroughs – Annual house price change as a percentage of annual wage | ||||||
Location | Average Annual Net Salary | Average House Price (April 2018) | Average House Price (April 2019) | House Price Growth (ยฃ) | Difference between Salary & AverageHP growth | House price growth to wage (%) |
Haringey | ยฃ27,346 | ยฃ555,449 | ยฃ511,543 | -ยฃ43,906 | -ยฃ71,251 | -161% |
Southwark | ยฃ29,191 | ยฃ517,934 | ยฃ475,052 | -ยฃ42,882 | -ยฃ72,073 | -147% |
Camden | ยฃ43,224 | ยฃ866,438 | ยฃ814,375 | -ยฃ52,063 | -ยฃ95,287 | -120% |
Lambeth | ยฃ32,265 | ยฃ516,207 | ยฃ488,610 | -ยฃ27,596 | -ยฃ59,861 | -86% |
Barnet | ยฃ29,227 | ยฃ541,502 | ยฃ516,750 | -ยฃ24,752 | -ยฃ53,979 | -85% |
Kingston upon Thames | ยฃ31,723 | ยฃ493,941 | ยฃ467,894 | -ยฃ26,047 | -ยฃ57,770 | -82% |
City of London | ยฃ40,145 | ยฃ732,351 | ยฃ699,794 | -ยฃ32,556 | -ยฃ72,701 | -81% |
Ealing | ยฃ29,642 | ยฃ481,101 | ยฃ459,796 | -ยฃ21,305 | -ยฃ50,947 | -72% |
Harrow | ยฃ27,810 | ยฃ465,391 | ยฃ445,636 | -ยฃ19,754 | -ยฃ47,564 | -71% |
Islington | ยฃ39,473 | ยฃ637,412 | ยฃ613,718 | -ยฃ23,694 | -ยฃ63,167 | -60% |
Wandsworth | ยฃ41,726 | ยฃ594,836 | ยฃ569,833 | -ยฃ25,004 | -ยฃ66,729 | -60% |
Havering | ยฃ25,593 | ยฃ369,070 | ยฃ357,770 | -ยฃ11,300 | -ยฃ36,892 | -44% |
Brent | ยฃ24,711 | ยฃ485,434 | ยฃ474,540 | -ยฃ10,893 | -ยฃ35,604 | -44% |
Bromley | ยฃ32,749 | ยฃ440,859 | ยฃ430,242 | -ยฃ10,616 | -ยฃ43,365 | -32% |
Redbridge | ยฃ27,341 | ยฃ412,072 | ยฃ403,911 | -ยฃ8,161 | -ยฃ35,502 | -30% |
Tower Hamlets | ยฃ34,792 | ยฃ455,910 | ยฃ447,895 | -ยฃ8,016 | -ยฃ42,808 | -23% |
Sutton | ยฃ26,423 | ยฃ375,827 | ยฃ370,200 | -ยฃ5,627 | -ยฃ32,050 | -21% |
Bexley | ยฃ26,878 | ยฃ338,476 | ยฃ333,317 | -ยฃ5,159 | -ยฃ32,038 | -19% |
Enfield | ยฃ25,325 | ยฃ396,942 | ยฃ393,253 | -ยฃ3,690 | -ยฃ29,015 | -15% |
Lewisham | ยฃ27,638 | ยฃ409,634 | ยฃ406,614 | -ยฃ3,020 | -ยฃ30,658 | -11% |
Westminster | ยฃ53,821 | ยฃ1,003,535 | ยฃ998,912 | -ยฃ4,623 | -ยฃ58,444 | -9% |
Richmond upon Thames | ยฃ42,250 | ยฃ649,078 | ยฃ650,897 | ยฃ1,820 | -ยฃ40,430 | 4% |
Croydon | ยฃ27,178 | ยฃ368,281 | ยฃ369,986 | ยฃ1,705 | -ยฃ25,473 | 6% |
Hillingdon | ยฃ24,049 | ยฃ408,618 | ยฃ410,386 | ยฃ1,768 | -ยฃ22,281 | 7% |
Waltham Forest | ยฃ25,408 | ยฃ430,972 | ยฃ433,158 | ยฃ2,186 | -ยฃ23,222 | 9% |
Newham | ยฃ22,713 | ยฃ360,618 | ยฃ364,292 | ยฃ3,674 | -ยฃ19,039 | 16% |
Hammersmith and Fulham | ยฃ39,314 | ยฃ710,090 | ยฃ718,767 | ยฃ8,677 | -ยฃ30,636 | 22% |
Merton | ยฃ34,377 | ยฃ494,428 | ยฃ502,107 | ยฃ7,680 | -ยฃ26,698 | 22% |
Barking and Dagenham | ยฃ22,007 | ยฃ291,184 | ยฃ299,029 | ยฃ7,845 | -ยฃ14,162 | 36% |
Hounslow | ยฃ25,757 | ยฃ387,621 | ยฃ398,170 | ยฃ10,549 | -ยฃ15,208 | 41% |
Greenwich | ยฃ32,009 | ยฃ383,039 | ยฃ396,529 | ยฃ13,490 | -ยฃ18,519 | 42% |
Hackney | ยฃ26,702 | ยฃ529,850 | ยฃ541,802 | ยฃ11,952 | -ยฃ14,750 | 45% |
Kensington and Chelsea | no data | ยฃ1,325,081 | ยฃ1,288,685 | -ยฃ36,396 | n/a | n/a |
ย | ย | ย | ย | ย | ย | ย |
London | ยฃ31,114 | ยฃ477,253 | ยฃ471,504 | -ยฃ5,749 | ย | -18% |
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