Investing in a house is a huge decision and one that has got even trickier with Brexit hovering on the horizon. Ideally, when it comes to moving house and selling up, you want to know you’ll get your money and some in return.
However, with even the annual house price growth in London starting to drop, that is no longer a guarantee. That is unless you live in one of these four places.
Estate agent comparison site, GetAgent.co.uk has revealed that if you live in North Devon, Derbyshire Dales, Cotswolds or Purbeck your house could be earning your yearly salary for you.
The growth in the average house prices in these areas all matched or exceeded the owner’s average wage. In North Devon, house prices increased by £24,410, surpassing the areas average annual income of £18,599.
Similarly, the property prices increase in The Derbyshire Dales, outstripped the average wave by £6,262. In the Cotswolds, the difference was smaller but your house could still earn you £4,276 more than the £24,641 average wage.
In Purbeck, annual house price growth went up by the least at £20,847, but owning a house here could still earn you more than the average net income of £18,145.
However, if you have a home in London you might want to consider holding onto it for a little bit longer. In the capital house prices have fallen by nearly £6,000 in the last year. This means your home will only have earned you 18% of the average wage in the area.
The boroughs of Camden, Haringey and Southwark in particular saw annual house prices drop below the areas average salary. Outside of London, 13 areas have been similarly affected. But it was house prices in Tandridge that have the worst hit, dropping by £8,922.
‘Those in Haringey, Southwark and Camden won’t be best pleased as they have seen the value of their property fall faster than they can earn money,’ says Colby Short, Founder and CEO of GetAgent.co.uk.
‘Those already on the ladder will feel this pinch on their pocket if they are looking to sell and with the long-term durability of the UK property market, they could see a reversal in fortunes by the time they do.’
Has your home been hard at work matching your salary?
Rebecca Knight has been the Deputy Editor on the Ideal Home Website since 2022. She graduated with a Masters degree in magazine journalism from City, University of London in 2018, before starting her journalism career as a staff writer on women's weekly magazines. She fell into the world of homes and interiors after joining the Ideal Home website team in 2019 as a Digital Writer. In 2020 she moved into position of Homes News Editor working across Homes & Gardens, LivingEtc, Real Homes, Gardeningetc and Ideal Home covering everything from the latest viral cleaning hack to the next big interior trend.
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