Pay is rising faster than house prices for many nationwide, data shows
We often see reports that show something of a doom and gloom outlook for the property market in the UK, with rising house prices stopping many from being able to invest further or get onto the ladder. However, new data shows that many people have seen their income increase at a faster rate than property values over the past ten years.
According to data published by the Yorkshire Bank, over the course of the last decade, more than half of the UK has seen average wages rise faster than average house prices, with Edinburgh and Birmingham two of the biggest cities among the 54 per cent of regions where this has been true.
In Scotland alone, the data revealed that the average house now costs five times as much as the average annual income. However, this is markedly down from the 6.2 times recorded ten years ago.
However, while Scotland as a whole shows that there has been a quicker rise in wages than house prices across this period, in England, there is a much wider spread of realities. While many areas in the north-east and across other northern regions have seen wages rise faster than home values, this is not the story for the country as a whole.
House prices rises in the south and London over the past decade means that the average property now costs 8.2 times the average income, rising from 7.9 times ten years ago. Such discrepancy between two different areas of the country further proves the continued existence of a north-south divide in the world of property.
The most expensive homes when held up against income were, unsurprisingly to be found in London, where those trying to buy in Haringey will find themselves having to pay more than 17 times the area's average wage. This is compared to Inverclyde in Scotland, where house prices are only 3.67 times higher than income.
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12-September-17General Lettings News