Homeowners in a fifth of UK areas have earned more from bricks and mortar than they have their day job, fresh analysis by Zoopla has revealed.
The data, compiled from Zoopla’s monthly estimates for every home in the country, found that there are more than 4.6 million private homes in the UK that rose in value by more than £30,500, the average UK salary, based on ONS data, in the past 12 months.
Homes in the South West, South East and London are most likely to have increased by more than the average regional salary over the last year, according to the study.
Properties in the South West are most likely to be earning more than the average salary in the region. In the past 12 months alone, 29% of residential properties in the region increased in value by more than the average regional salary, which currently stands at £29,000.
Homes in the South East are the second highest top earners compared to the average salary. Some 28% of properties increased in value by more than the average regional salary of £32,900 over the last 12 months.
London, which many may have expected to come top, comes third on the list, due to the higher than average salaries earned there. Nearly a quarter – 24% – of homes in the capital went up by more than the average London salary of £37,300 in the past year.
Despite homes in the north and Midlands rising less in monetary terms than their southern counterparts, the lower house prices in these regions and the pace of property price growth means a notable proportion of homes are still rising at a higher level than local salaries.
Some 18% of homes in the North West, 17% of homes in the East Midlands, 14% of homes in the West Midlands and one in ten homes – 9% – in the North East have gone up in value by more than the average salaries in these areas in the past year. In Scotland, the figure is 9%, whilst in Wales it is 22%.
Andy Marshall, chief commercial officer at Zoopla, said: “As our agent partners know better than anyone, there’s been strong demand from home buyers since the market reopened after the first lockdown in May last year, compounded by the search for space and the stamp duty holiday.
The impact this has had on house prices means that one in five homes in the UK have risen in value by more than the equivalent of a years’ salary over the space of 12 months. For homeowners, we’d encourage them to contact an agent directly for an expert market valuation to see how much their home has earned and discover whether now is the time to cash in.”
Proportion of homes that have increased in value more in past 12 months than the average salary for the region:
|
Region |
Average salary |
Average property value |
% of homes that have increase in value more than average regional salary in past 12 months |
Number of homes that have increased in value more than average regional salary in past 12 months |
|
South East |
£32,900 |
£379,000 |
28% |
927,000 |
|
London |
£37,300 |
£521,000 |
24% |
625,000 |
|
South West |
£29,000 |
£300,000 |
29% |
620,000 |
|
Eastern |
£31,500 |
£333,000 |
23% |
514,000 |
|
North West |
£27,800 |
£189,000 |
18% |
474,000 |
|
Yorkshire and The Humber |
£28,700 |
£183,000 |
17% |
321,000 |
|
East Midlands |
£28,100 |
£224,000 |
17% |
294,000 |
|
West Midlands |
£30,200 |
£218,000 |
14% |
289,000 |
|
Wales |
£28,200 |
£188,000 |
22% |
256,000 |
|
Scotland |
£34,100 |
£168,000 |
9% |
165,000 |
|
North East |
£33,700 |
£144,000 |
9% |
88,000 |
|
UK |
£30,500 |
£265,000 |
21% |
4,635,000 |
Top ten areas in the UK where properties have increased more in the past 12 months than average salary for that area:
|
Area |
Average salary |
Average property value |
% of homes that have increased in value than average salary the area in past 12 months |
Number of homes that have increased in value more than average salary in the area in past 12 months |
|
Hastings |
£25,800 |
£285,000 |
62% |
18,000 |
|
Adur |
£26,700 |
£382,000 |
60% |
14,000 |
|
Mole Valley |
£30,400 |
£649,000 |
54% |
17,000 |
|
Rother |
£27,200 |
£358,000 |
51% |
21,000 |
|
Dorset |
£28,000 |
£352,000 |
47% |
71,000 |
|
St Albans |
£42,600 |
£663,000 |
46% |
24,000 |
|
Cotswold |
£29,900 |
£442,000 |
46% |
21,000 |
|
Sevenoaks |
£35,300 |
£501,000 |
45% |
24,000 |
|
Bromley |
£41,900 |
£552,000 |
45% |
51,000 |
|
South Lakeland |
£27,900 |
£295,000 |
45% |
21,000 |
Comments are closed.