According to research by the property website Zoopla, the value of property in the UK is rising faster than the average wage.
The study revealed that the average wage rise was outperformed by increases in property values by 1.13% during the last 12 months. The average UK income level moved by -0.6%, while the average property price rose by 0.53% during the year to June.
Zoopla used its own property data from 55 of the largest cities and towns, and yearly salary figures from Adzuna, the job website, to compare the ratio of salary to property growth. In this study, the least affordable of all 55 locations was Luton. Salaries in the area had fallen by 2.94% to £32,067 during the last year, while property values had increased by 5.06%, reaching £259,715. The ratio of salary to property value growth in Luton was estimated at -7.99%.
The most affordable locations were Chelmsford and Sunderland, where salaries had risen faster than property values. Although the property market in the UK has continued to slow down, in real terms national property values have not fallen.
For many homeowners, they are likely to experience a rise in property value much sooner than their salaries. The most affordable place to live is Newcastle, where property values are 4.21 times the average salary, while property prices in London equate to 20 times the average local salary.
With property prices remaining high, and salaries falling behind, finding an affordable mortgage is more important than ever, which is where a mortgage advisor who has spent time on a CeMAP course can help.
