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House Prices in the UK Increasing Faster than Wages

Property prices in the UK are rising at a faster rate than salaries for 38% of workers in the UK, according to new figures.

UK Property Prices Rising Faster Than Wages

Property prices in the UK are rising at a faster rate than salaries for 38% of workers in the UK, according to new figures.

Research conducted by Post Office Money has revealed that last year the value of residential property in the UK grew by £18,000, a figure that is higher than the annual salary for nearly two fifths of the UK’s workforce.


The average house price in the UK is now £288,000 according to the Office for National Statistics, rising from £270,000 in 2014. Conversely, the average wage for UK workers rose by £400 to £26,400.


In London, where house prices remain the fastest growing in the country, the average house increased in value by £46,000, whilst the average salary for workers in the capital stands at £36,000.


Post Office Money’s head of mortgages John Willcox suggested that the nationwide shortage of property comparative to demand continues to push house prices up, as purchasers struggle within a competitive housing market that is ‘failing to match the needs of those looking to buy’.


Earlier this month, the Residential Landlords Association found that property prices in the first quarter of 2016 are being further elevated by purchasers looking to beat the new Stamp duty deadline. Responding to a survey, 46% of respondents stated that they had purchases in progress that they were rushing to complete before April 1st.


Commenting on the expected surge in purchases in Q1, Willcox indicated that it would be ‘a year of two halves’, stating that he expected a decline in activity in the second half of the year following the introduction of the Stamp Duty increases and the uncertainty surrounding the UK’s ‘Brexit’ referendum which will decide whether the UK remains in the European Union.

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