As many as 9 local areas of London are among the UK’s top 10 local authorities, which have seen average house prices increase by more than the total average pay in the last five years.
According to a latest research report from Halifax, the average UK house price increase of £78,400 over the past five years has been greater than the earnings in three employment sectors over the same period. This clearly establishes that the house price growth in the long-term has been beneficial to house-buyers.
London leads the list of local areas where house price growth is outstripping average pay. House prices in Barnet in London exceeded average take-home earnings in the area by £52,256, the highest in the country and equating to £2,177 per month. The difference between house prices and earnings in Barnet equates to almost three quarters (73 per cent) of the average deposit on UK house purchases (£71,297).
Barnet is followed by Merton (£115,892) and then Waltham Forest (£103,227), Haringey (£95,561), Greenwich, Harrow, Hackney, Newham, and Redbridge, all in London. Hertsmere (£71,281) in the East of England, is the only local authority outside London to make it to the top 10.
Going by the price growth trend, it is evident that house-buyers in these local districts are set to benefit in the long-term.
Despite the slowdown in house price growth in southern England, it has still outpaced wages across most of the region. This means that middle earners are also facing a challenge getting on to the property ladder - Halifax