|Average H&F Home Earns Almost Four Times as Much as Homeowner|
200,000 pound rise makes largest earnings difference in country
House prices in Hammersmith and Fulham increased by an average of £199,930 over the last two years, according to the latest research from Halifax.
This meant that the rise in house prices exceeded average take-home earnings in the area by £143,232 - the largest difference in the country.
The research found that over the past two years average house prices have increased by more than the average employee's net earnings in almost one in five – 73 out of 384 – local authority districts across the UK. The vast majority of the districts - 68 out of 73 - were in London, the South East, and East.
Looking at the longer term picture, the research found that over the past decade (2005 - 2014) average house prices have increased by more than total pay in just two areas across the UK Hammersmith & Fulham and Hackney.
And house prices are continuing to soar upwards with a national rise of 9% in 2014 and a much sharper rise of 16% in London, which meant that houses were earning more than their owners in 95 local authority districts - a quarter of the total.
Martin Ellis, housing economist at Halifax, says: " The housing market recovery over the past couple of years has resulted in some substantial prices rises in some areas of the country, particularly in London and the South East.
"This has resulted in homes increasing in value by more than total take-home earnings for the average homeowner in some areas of the country.
"This is good news for some homeowners. At the same time, it is challenging news for those looking to buy their first home in such areas, with prices being pushed out of range for many young people."
March 20, 2015