I think it’s safe to say that our property market has recovered well this year.
In fact, it’s bounced back so well that your own house could now be earning more than you.
Post Office research claims that around two-thirds of people in the UK earned an annual salary less than the average UK home. Over the last 12 months, the average house price went up more in value than average annual earnings – that’s £29,339 to £27,271.
Unsurprisingly, London took it to a whole other level, with homes going up £80,000 over the same period. That’s twice the average salary in the capital, and around £10,000 over the average pay of a fully qualified doctor.
Since the majority of people aren’t big money earners, this increase may compound the difficulties of first-time buying. Graduate nurses earn around £21,000, police officers take home £23,000 and a teacher’s standard wage is £22,000.
Although there are some signs of salaries rising and inflation falling, for people still struggling to climb on to the property ladder, this news is going to be another concern.
Having said that, relief from the heated housing marketing is due in 2015. Experts are predicting a marked slowdown. High prices, Mortgage Market Review guidance (e.g. stricter criteria for borrowers), and less demand from overseas buyers are cited as being some of the causes.
Keep reading our articles – we’ll keep you updated on what’s happening throughout 2015.