cashinmattress Posted March 10, 2017 Share Posted March 10, 2017 http://www.whatmortgage.co.uk/news/homeowners-one-three-uk-areas-earn-property-going-work/ Quote Average house prices have increased by more than total average employees’ net earnings in a third of local authority districts across the UK in the past two years, according to new research from Halifax. The data found that the proportion of areas where house prices are outpacing earnings over the last two years has edged up from 28% in 2015. More than nine out of 10 are in London, the South East, South West and the East of England with these four regions accounting for 111 of the 119 (93%) areas. The biggest gap between rising property values and earnings was in Haringey in London. House prices in the borough increased by an average of £139,803 over the last two years, exceeding average take-home earnings in the area of £48,353 over the same period – a difference of £91,450, equivalent to £3,810 per month. Haringey is followed by Harrow in north London with a price growth to earnings difference of £77,791, St Albans (£72,995) and Waltham Forest (£63,646). In total, six London boroughs appear in the top 10 districts, including Newham (£63,583), Redbridge (£56,528) and Hounslow (£54,569). The top performers outside southern England include South Northamptonshire in the East Midlands, with house price gains in excess of earnings of £33,514 over the period 2015 and 2016.This is followed by Warwick in the West Midlands (£21,240), Trafford in Greater Manchester (£14,170) and Harrogate in North Yorkshire (£12,508). The only regions where the top performing local area recorded earnings exceeded house price increases were the North East (-£3,324), Scotland (-£11,510) and Northern Ireland (-£15,951). Over the past five years, 64 local areas in the UK (17% of the total) have seen average house prices increase by more than total average pay. Four areas have recorded a differential of over £100,000 over the past five years. The greatest was again Haringey, where average property prices have increased by £242,121, surpassing average take-home pay during the period by £124,300. Haringey is followed by Harrow (£115,522), Watham Forest (£105,195) and Three Rivers (£101,082). Nine of the top 10 performers are in London. Martin Ellis, housing economist at Halifax, said: “Buoyancy in the housing market over the past two to five years has resulted in homes increasing in value by more than total take-home earnings for the average homeowner in many areas, though mostly in southern England. “While it’s no longer unusual for houses to ‘earn’ more than the people living in them in some places, there are clearly local impacts. Homeowners in these areas can build up large levels of equity quickly, but for potential buyers whose wages have failed to keep pace, the cost of buying a home has become more unaffordable during that time.” I suppose its good if you're on the winning team. Quote Link to comment Share on other sites More sharing options...
Fully Detached Posted March 10, 2017 Share Posted March 10, 2017 4 minutes ago, cashinmattress said: http://www.whatmortgage.co.uk/news/homeowners-one-three-uk-areas-earn-property-going-work/ I suppose its good if you're on the winning team. The winning team consists of bankers and downsizers. Everyone else is on the losing side, but obviously most of them don't realise it. I'm sure there'll be plenty of terminally deluded people reading this and congratulating themselves on how clever they've been, by managing to accrue enough equity in their existing house to act as a deposit on the increasingly massive debt that they now need to take on in order to move up to their next place. And Martin Ellis ain't going to tell anybody otherwise, now is he? The more I remove myself from this mass hysteria, the funnier it is to watch. Quote Link to comment Share on other sites More sharing options...
billybong Posted March 10, 2017 Share Posted March 10, 2017 Of course it's almost as much a reflection on "earnings" as it is on house prices. How can anyone view the ever increasing impoverishment of swathes of the population as a result of the differential benefits of earnings versus house prices with such equanimity. It's nothing short of wicked and on a par with Hammond's sniggering and laughing as Corbyn described the plight of young people in the housing market after Hammond's budget speech. Quote Link to comment Share on other sites More sharing options...
Fromage Frais Posted March 10, 2017 Share Posted March 10, 2017 25 minutes ago, Fully Detached said: The winning team consists of bankers and downsizers. Everyone else is on the losing side, but obviously most of them don't realise it. I'm sure there'll be plenty of terminally deluded people reading this and congratulating themselves on how clever they've been, by managing to accrue enough equity in their existing house to act as a deposit on the increasingly massive debt that they now need to take on in order to move up to their next place. And Martin Ellis ain't going to tell anybody otherwise, now is he? The more I remove myself from this mass hysteria, the funnier it is to watch. And may of those down sizers are loosing valuable quality time at the end of their lives. i remember a nice 4 bed family home i viewed with a couple looking to leave to move to a bungalow urgently as his knees could not do stairs.... but not so urgently to take 8% of the asking price and preferred to wait months more in pain just for another 20k on a 450k house which was bought in 1980 There is precious little link to salaries now the market is slowing as people only have their homes to spend on another home their savings just about cover the moving costs. Quote Link to comment Share on other sites More sharing options...
Fully Detached Posted March 10, 2017 Share Posted March 10, 2017 6 minutes ago, Fromage Frais said: And may of those down sizers are loosing valuable quality time at the end of their lives. i remember a nice 4 bed family home i viewed with a couple looking to leave to move to a bungalow urgently as his knees could not do stairs.... but not so urgently to take 8% of the asking price and preferred to wait months more in pain just for another 20k on a 450k house which was bought in 1980 There is precious little link to salaries now the market is slowing as people only have their homes to spend on another home their savings just about cover the moving costs. You should have picked him up, carried him up the stairs and left him at the top - then every time he made it back down, do the same again. Focus his mind on what's actually important Quote Link to comment Share on other sites More sharing options...
The Knimbies who say No Posted March 10, 2017 Share Posted March 10, 2017 35 minutes ago, billybong said: Of course it's almost as much a reflection on "earnings" as it is on house prices. How can anyone view the ever increasing impoverishment of swathes of the population as a result of the differential benefits of earnings versus house prices with such equanimity. It's nothing short of wicked and on a par with Hammond's sniggering and laughing as Corbyn described the plight of young people in the housing market after Hammond's budget speech. Quite right. Quote Link to comment Share on other sites More sharing options...
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