Halifax: one in four UK homes earn more than owners


Updated on 24 February 2016 | 7 Comments

Rising house prices have outpaced earnings in 28% of UK. Is your home earning more than you?

The number of areas where house prices are overtaking earnings has jumped over the last year according to new figures from Halifax.

The bank says rising house prices mean over a quarter of local authority districts across the UK, mainly located in London, the south east and East of England, are now experiencing this phenomenon.

Homes in Three Rivers in Hertfordshire had the biggest gap over the last two years. In this area house prices have jumped £147,990, exceeding the average take home earnings in the area of £49,999 over the same period. As a result, property in the area made almost £98,000 more than owners.

Below are the ten districts where house prices have outpaced earnings by the biggest margin over the last two years.

Local authority

Region

Two-year change in house prices

Net median earnings (2014-2015)

Two-year difference in house prices vs earnings

Three Rivers

East of England                              

£147,990

£49,999

£97,992

Harrow

London                                       

£147,068

£49,595

£97,472

Greenwich

London                                        

£131,811

£48,543

£83,268

Hillingdon

London                                       

£132,125

£49,976

£82,149

Brent

London                                       

£120,031

£46,884

£73,147

Watford

East of England                              

£121,646

£49,823

£71,823

Waltham Forest

London                                       

£115,908

£45,230

£70,678

Ealing

London                                       

£115,724

£46,238

£69,486

Cambridge

East of England                              

£115,650

£49,030

£66,620

Merton

London                                       

£116,119

£50,791

£65,328

Source: Halifax and ONS

Martin Ellis, housing economist at Halifax, said: “Clearly, this is good news for some homeowners. However, it does make conditions tougher for those looking to buy their first home in such areas, with prices being pushed increasingly out of range for many young people.”

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The areas which beat wages over five years

Halifax also looked at house prices versus earnings over the past five years.

In this case, around 9% of areas in the UK have seen average house prices increase by more than average take-home pay, up from 6% last year.

London areas dominate the top ten with Hammersmith and Fulham house prices rising by £248,971. surpassing average take-home pay during the period by an incredible  £108,653.

Local Authority

Region

Five-year change in house prices

Net median earnings (2011-2015)

Five-year difference in house prices vs earnings

Hammersmith and Fulham

London                                       

£248,971

£140,319

£108,653

Ealing

London                                       

£206,681

£115,554

£91,128

Haringey

London                                       

£185,913

£116,633

£69,279

Hackney

London                                       

£191,647

£122,531

£69,116

Merton

London                                       

£189,946

£126,383

£63,562

Islington

London                                       

£196,424

£137,571

£58,853

Richmond upon Thames

London                                       

£208,097

£150,142

£57,954

Waltham Forest

London                                        

£167,855

£110,054

£57,802

Greenwich

London                                       

£176,508

£119,408

£57,100

Wandsworth

London                                       

£197,736

£143,572

£54,165

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