Back Latest News

Did Your House Have a Pay Rise?

Sunday, July 30, 2017

With all the discussion in the news about the housing market cooling down it would be easy to take a negative view. However an article recently published by Zoopla gives a different perspective. They ask - how much was your latest pay rise? Chances are, it was less than the value increase of your home over the past 12 months, says the Zoopla research.

Property values in Britain outpaced average wage increases by 1.13% in the past year, according to the latest Zoopla research. Average home values across the country increased by 0.53% in the 12 months to June, while national average incomes moved by -0.6%.

Zoopla compared its own property data across 55 of Britain’s biggest towns and cities with annual salary figures from job website Adzuna, to access the average ‘salary growth-to-property-price growth’ ratio. Using this ratio, Luton emerged as the least affordable of the 55 locations. The large Bedfordshire town saw average local salaries fall by 2.94% to £32,067 during the last 12 months, while its property prices jumped 5.06% to £259,715. This puts the salary-to-property price growth ratio down at -7.99%.

Stevenage and High Wycombe, where growth in the value of homes outpaced salary rises by -6.41% and -5.43% respectively, emerged as the next least affordable places to live during the last year. Conversely, Sunderland and Chelmsford were the most affordable locations. Sunderland saw salary increases outdo property price growth by a ratio of 7.81%, while Chelmsford rung in second at 7.68%.

While the latest evidence suggests that growth in Britain’s housing market is continuing to cool, national property values have not dropped in real terms. And, in many cases, homeowners will wait longer for a pay rise at work than for an increase in the value of their home. However, as Zoopla’s research shows, this is not always the case. Britain is also littered with property ‘micro markets’. In some areas, house prices are static or, as is currently the case in Aberdeen, falling.

Zoopla also looked at a snapshot of the disparity between average earnings and property prices across Britain. Unsurprisingly, the highest property price-to-salary ratio is found in London, where a typical home costs almost 20 times (19.53) average local earnings. It’s followed by Guildford, Surrey where average property is worth 18.39 times local earnings, and the city of Winchester where it's worth 17.78 times. Newcastle, where property prices are 4.21 times the average salary, is the most affordable place to live, followed by Bradford and Hull which both come in at 4.62 times.

Article taken in part from

Important Information

All property sales and the financial advice that surrounds them are as unique as the people engaging in the transaction. It is important to not make a decision without seeking professional advice. If you want to sell your home and are considering redecorating before marketing, speak to one of our Property Professionals to get the best advice for presenting your home for sale before making any investment.  



Contact Us
Property Search Hide
Please use the selections below to narrow down your search.
Please use the selections below to narrow down your search.
Browse Property Browser our entire property portfolio Show all properties