A third of home owners across the UK are earning more from their property than they are from their day job, according to the Halifax.
According to a report compiled by the Halifax, the local areas where property values have outpaced earnings during the last two years, have risen 31%, up from 28% in 2015. Haringey has the biggest gap between earnings and property prices, where home owners are earning £3,810 from their home each month. Although house prices in London have experienced huge increases over the last two years, earnings haven’t kept pace.
During the last five years, 17% of areas across the UK have experienced the average house price rising faster than earnings. This is exciting news for existing home owners who are building equity in their property. However, for first time buyers this makes it much harder to be able to get onto the property ladder, especially as their income may have failed to keep pace with the property price increases.
There are six London boroughs in the top 10 areas where home owners can earn more from their property than their day job. Earnings have performed better than property prices in just three areas of the UK; Northern Ireland, Scotland and the north east.
Mortgage advisers study on CeMAP courses to ensure that they have all the required information to help first time buyers get onto the property ladder. They may also be able to help existing home owners to maximise equity, by finding them a mortgage deal with a lower rate of interest.
