WHO EARNS MORE – YOU OR YOUR HOUSE? NOW YOU CAN FIND OUT

HOMEOWNERS are pocketing more per hour from the rise in value of their properties than they are earning from salaries, it can be revealed.

Analysis shows house prices soared by almost £10 AN HOUR in many regions last year due to an explosion in the housing market.

Details of the surge in house-price inflation have emerged via newly released research conducted by House Buy Fast.

The property firm has also created a free-to-use Price Earnings Calculator which lets users see just how much their home has risen in value over the past year.

By using up-to-date price data, buyers and sellers can also track any changes and see the impact of change by the year, week, day and even working hour.

And its data shows many homeowners are now routinely clocking up more each hour through the rise in the value of their property than they do by clocking on for work.

According to the Price Earnings Calculator people living in a property worth £289,099 which is the current UK average – can expect to have seen their value increase by at least £19,842 over the past 12 months. That breaks down to £9.88 an hour, £79 a day and nearly £400 a week.

Meanwhile, the millions of Brits who now live in properties worth £425,000 have seen their value rise by almost £30,000 a year.

That is the equivalent of £ 560 a week which, according to the Office of National Statistics, is higher than the current average weekly wage.

And those who own properties worth between £850,000 to £1m will have seen values rise at more than double the rate of the national average weekly wage over the past 12 months.

Commenting, Jonathan Rolande, the founder of House Buy Fast, said:

“The house price surge over the past couple of years has been truly staggering. And this calculator lays bare just how remarkable some of the regional increases have been.

In very many cases homeowners are now earning far more an hour through the value of their property increasing than they are by going to work.

“To see house prices rising faster than the rate of wages in this way is bittersweet. On one hand it underlines, once again, the strong position those owning their own home now find themselves in. But on the flip side it shines a light on the struggle many trying to enter the market face. With house prices rising higher than the rate of wages, many
young people will now really struggle to get on the ladder, especially during a cost of living crisis. That’s why it’s vital we see effective Government policies designed to boost people’s chances of owning a property rather than recycled ideas like the right to buy gimmick we saw rolled out recently by the Prime Minister.“

The Price Earnings Calculator works by compiling Land Registry data linked to millions of UK homes. It compares how prices have risen in that area with rates of pay which are based on Office of National Statistics figures.
In March figures showed that house price rises had outstripped wage growth in more than 90% of England and Wales.

Kensington and Chelsea remained the least affordable local authority area in England and Wales, with average house prices estimated at 36.5 times the typical annual wage.

Last month it was reported that the average UK house price hit a fresh high, rising for the 11th month in a row.

House prices increased by 1% between April and May, or £2,857, taking the average price of a home to a record of £289,099.

While annual house price growth remains at the elevated level of 10.5%, this is the slowest rate of growth since the start of the year.

Northern Ireland topped the table for annual house price inflation again in May, after prices rose by 15.2% over the past 12 months, taking the average above £185,000.

This was followed by southwest England, where there was an annual growth of 14.5%, taking the average price above £305,000. Meanwhile, average house prices in Wales rose to a record level of above £216,000 after a 13.7% increase over the past year.

House hunters in London will need £247,638 more than they did 10 years ago.