A report produced by the Centre for Economics and Business Research on behalf of the Post Office shows that in some areas of the UK, properties are appreciating in value faster than two out of five UK salaries.
The average UK salary last year was £26,426, while average property prices increased by £18,119 during 2015. However, 38% of workers in the UK earned less than a typical house price increase in the last year. Some of the workers who ‘made’ less than the average property increase include couriers, care workers, customer services and sales. Many of these occupations earn below £18,000 a year, according to analysis by the Post Office.
Growth of property values is now catching up to the starting point on the salary scale for some of the most common occupations in the UK, which includes police officers, nurses, teachers and junior doctors. Typical salaries for these professions is between £21,000 and £23,000. Figures provided by the Office for National Statistics indicate that wages increased by 2% in the last three months of 2015, while property prices increased by 7%.
The Post Office report revealed that first time buyers are finding the conditions especially difficult, as the average price for a starter home has increased by 30%. As demand continues to outperform supply, house prices are likely to continue to increase.
Mortgage advisers who are CeMAP qualified may find that they experience increased demand as first time buyers continue to seek advice and support when looking for a property and a mortgage.
