Homes earn more than people

Sarah Davidson

March 17, 2015

The majority of such areas are in London, the South East and East, which make up 68 of the 73 local districts in question.

Martin Ellis, housing economist at Halifax, said: “The housing market recovery over the past couple of years has resulted in some substantial prices rises in some areas of the country, particularly in London and the South East.

“This has resulted in homes increasing in value by more than total take-home earnings for the average homeowner in some areas of the country.

“This is good news for some homeowners. At the same time, it is challenging news for those looking to buy their first home in such areas, with prices being pushed out of range for many young people.”

The greatest price difference is in Hammersmith and Fulham, where prices increased by nearly £200,000 over the last two years, exceeding average take-home earnings in the area by £143,232.

Outside London, Cotswold has the highest price increase to earnings ratio of £31,222.

Looking over a 10-year period, house prices have increased by more than total pay in just two areas across the UK – Hackney and Hammersmith & Fulham in London.

Sign up to our daily email