Newsflash! ''47% of house prices in Dorset grow by more than the average salary''

Newsflash! ''47% of house prices in Dorset grow by more than the average salary''

Newsflash! ''47% of house prices in Dorset grow by more than the average salary''

Newsflash! ''47% of house prices in Dorset grow by more than the average salary''

More than 4.6 million properties, amounting to more than a fifth (21%) of all privately owned UK homes*, have risen in value by more than the average annual salary in the past year.

That means the average house price in the UK has increased by £30,500** over the past 12 months.

Homes in the South West are most likely to be earning more than the average salary in the region, where in the past 12 months alone 29% of homes increased in value by more than the average regional salary (which currently stands at £29,000).

Houses in the South East are the second highest top earners compared to the average salary, with 28% of properties increasing in value by more than the average regional salary of £32,900 over the last 12 months.

London then comes third on the list due to higher salaries earned there. However, nearly a quarter of homes in the capital went up by more than the average London wage of £37,300 in the past year.

Despite homes in the North and Midlands rising less in monetary terms than their Southern counterparts, the lower house prices and the rate of house price growth has resulted in a large proportion of homes rising at a higher level than local salaries. This includes: North West (18%), East Midlands (17%), West Midlands (14%), North East (9%)

In Scotland, the figure is 9%, while in Wales it is 22%.

Home values in some commuter hotspots have also outperformed local salaries over the last 12 months. And this comes as no surprise as the ‘search for space’ and the ‘reassessment of home’ continues to push inner-city workers to look further afield. The commuter belt of London is a prime example, with 54% of homes in Mole Valley, Surrey, and 46% of homes in St. Albans, increasing in value by more than the average local wage.

The shift among some homeowners from urban to more rural living during the pandemic has also resulted in house prices rising faster in countryside and coastal areas.

Some of the largest property value increases when compared to average local salaries include: Hastings, East Sussex (62%), Adur, Sussex (60%), Dorset (47%), The Cotswolds (46%).
*Number of properties in the UK based on ONS data ** Average salary based on ONS data

To find out how the value of your home may have been affected in the past 12 months, contact us to speak with a member of our friendly residential sales team.

 

Added: 10th September 2021

Sherborne AbbeyWimborneGold Hill, Shaftesbury