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Fifth of homes ‘earned’ more than the average wage over past year, study finds

·3-min read

One in five homes are likely to have “earned” more than their owner over the past year, according to a property website.

In some areas, more than half of homes have increased in value by more than the average local wage, Zoopla said.

It estimates that across Britain, more than 4.6 million properties, or more than a fifth (21%) of homes, have risen in value by more than average wages over the past 12 months.

Homes in the south-west of England are most likely to be earning more than the average salary in the region, Zoopla said.

In the past 12 months alone, 29% of homes in the region increased in value by more than the average regional salary.

In Scotland, 9% of homes have “outperformed” wages over the past year, while in Wales the proportion is 22%.

London commuter hotspots have performed particularly well.

In Mole Valley, Surrey, more than half (54%) of homes have increased in value by more than the average local salary, and in St Albans in Hertfordshire, the proportion stands at 46%.

Coastal and rural areas have also performed strongly as home buyers have searched for more space during the coronavirus pandemic.

In Hastings, East Sussex, 62% of homes increased in value by more than the average local salary.

The proportion stands at 60% in Adur, Sussex, 47% in Dorset and 46% in the Cotswolds.

Grainne Gilmore, head of research at Zoopla, said the search for space and a stamp duty holiday have boosted demand.

She said: “Hundreds of thousands of households have made the move into their new home over the last year, but activity has been so high it has eroded the stock of homes for sale, which has put upward pressure on house prices, with values rising by up to 9% in some parts of the country.

“When this price rise is translated into pounds and pence, it means one in five homes have risen in value by more than the equivalent of a year’s earnings over the space of 12 months. Anyone can get an instant estimate on the value of their home at MyHome on Zoopla.”

Here are the top 10 hotspots in Britain where house price growth is more likely to have outperformed the annual local wage, according to Zoopla, with the proportion of homes that have increased in value by more than average salary in the area in the past 12 months: 

1. Hastings, 62%

2. Adur, 60%

3. Mole Valley, 54%

4. Rother, 51%

5. Dorset, 47%

=6. St Albans, 46%

=6. Cotswolds, 46%

=8. Sevenoaks, 45%

=8. Bromley, 45%

=8. South Lakeland, 45%

And here are the proportions of homes across regions and nations that have increased in value by more than the average annual salary there over the past 12 months, according to Zoopla:

– South East, 28%

– London, 24%

– South West, 29%

– Eastern England, 23%

– North West, 18%

– Yorkshire and the Humber, 17%

– East Midlands, 17%

– West Midlands, 14%

– Wales, 22%

– Scotland, 9%

– North East, 9%

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