Did your house earn more than you last year?

12th December 2014

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The average property has earned more in the past 12 months than a typical British worker.

 

While the average worker earned £27,271 in a year, the average house added £30,000 in value, according to research by Centre for Economic and Business Research for the Post Office.

 

Average wages have grown just 0.6%, equivalent to £169, since 2013 but soaring house prices mean the average home has grown £29.339 to £272,952 – up from £243,613 last year.

 

More than three in five workers have earned less than the average house price rise.

 

Unsurprisingly, the greatest house price rises have been in London, South East and East. Homes in the capital have added an average of £80,452, almost twice the average wages of £41,095 earned in London.

 

The steep climb in house prices in London means a property is earning more per year than a fully qualified doctor.

 

John Willcock, head of mortgages at the Post Office, said he expected prices to continue rising.

 

‘Property prices have soared over the last year, following a long period of recovery – and are set to increase further over the next five years,’ he said. ‘While this is good news for those that already own their home, our study highlights the struggle that buyers and movers looking to climb the property ladder faces, especially in getting on that all important first rung.’

 

 

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