According to the latest research by Halifax, the contrast between earnings and property price inflation has shrunk significantly across the UK in recent years. In the past, homeowners in the various location found themselves ‘earning’ more from the annual increase in the value of their property than from their pay. The trend is now shifting as a result of weaker house price inflation and stronger wage growth.
The research also reveals that the average rise in house prices had out-stripped post-tax earnings in fewer than 1 in 10 (8%) local authority districts (LADs). Comparing this to 2017 which was almost 1 in 5 and nearly a third (31%) in 2016.
Richmond-upon-Thames in London was one of the few that produced the largest gap between the property inflation and the wages at £55,482, or the equivalent of £2,312 per month. This equals to more than 80% of the average deposit on UK house purchases. However, this still falls short of the London average of £137,638.
The data revealed that Winchester was the area with the next largest gap. This area is home to much of the South Downs National Park in the South East of England (£45,016). The only other London borough that made it to the top 10 list was Wandsworth, in contrast to the previous year, when nine of the top 10 local authority districts were in London.
About Stuart Mosley
Stuart Mosley (CeFA, CeMap, CLTM) founded SJ Financial Solutions in June 2005 having spent 12 years with big corporates such as Halifax and Santander. He felt the personal touch and straight speaking was missing from financial and mortgage advice services and set up SJ Financial Solutions to change this.
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