You are here: Home - Mortgages - Remortgage - News -

The areas where homes earn more than their owners

Written by: Christina Hoghton
One in five areas of the UK have seen average house prices increase by more than the property owner’s salary in the last two years.

Barnet tops the list, with properties in the London suburb earning a massive £52,000 more than their owners – that’s £2,177 a month more.

The next biggest gap is in North Hertfordshire in the East of England (£40,903), the only place outside London and the South East also feature in the top 10, according to the Halifax research.

However, Halifax also found that the proportion of areas where house prices are outpacing earnings has fallen, from 31% in 2016 to 18% in 2017, or from 119 areas to 71.

Russell Galley, managing director at the lender, said: “Over the past two years, we have seen house price growth and earnings converge at a national level, leading to a drop in the total number of areas where the average house price rise is greater than owners’ take-home earnings.

“Despite the slowdown in house price growth in southern England, it has still outpaced wages across most of the region. This means that middle earners are also facing a challenge getting on to the property ladder.”

North/South divide

The research also highlighted a continuing North / South divide, with 86% of areas where the average house price rise is greater than local median earnings over the last two years in London, the South East, South West or East of England.

The top performers outside southern England include Harborough in the East Midlands, with house price gains £19,662 more than earnings over 2016 and 2017 (£73,916 v £54,254).

Elsewhere, Ribble Valley in the North West (£8,217), Tamworth in the West Midlands (£3,226) and Denbighshire in Wales (£793) all saw house prices outperform wages.


There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Geopolitical uncertainty sees gold demand soar: why is it a safe haven?

We're reminded gold is a safe haven but why is this and how can you tap into the precious metal?