Properties outearn homeowners in 34% of Britain over last year

Research reveals that homes have earned more per hour than their owners in the last year across a third of the UK (34%). This is due to the pandemic property market boom which has led to an increase in house prices. As a result, there is now a gap in the market between homeowners and their homes.

We analysed the annual change in house price growth across Britain, and what this equates to as an average hourly rate for full- time employment (FTE). The annual change was then compared to the actual average hourly rate for FTE, in order to understand the gap between earnings and house price increase.

Our research shows that across Britain, the average property has increased by a whopping £32,893 over the last year. Yet, the average person works 1,903.2 hours per year, equating to a standard hourly rate of £17.28. The average Brit in FTE however, has earned £18.84 per hour, out- earning their home by £1.56.

Top three regions that outearned homeowners

When analysing house prices on a regional level in the last year, we found that homes have out-earned their owners in three regions on an hourly basis. The three regions out earning their owners include, the South West (£7.20), the East of England (£4.68), and the South East (£3.99).

After analysing the market at a local authority level, we found that the annual rate of house price growth equated to a higher rate of hourly pay - across no less than 34% of local authorities.

Which areas have seen the largest increase?

Some areas have seen a large increase in average house prices, vastly outstripping the average salary. Such areas include South Hams, Devon, where the average house price has increased by a massive £79,290 in a year. This is the equivalent of earning £41.66 an hour - £23.70 more than the local average hourly earnings of £17.96.

Properties that outperformed their owners (per hour) across the UK reside in Harborough, Leicester (£18.43), the Vale of Glamorgan in Wales (£16.05) and Islington, London (£15.87). In other areas such as Mid Sussex, homes earned £14.82 more per hour than the average person.

“House prices have boomed during the pandemic” - GetAgent CEO Colby Short

“House prices have boomed during the pandemic, so much so that bricks and mortar is earning more than the average hourly wage in over a third of Britain.

This will be welcome news for those already on the ladder but it highlights the very tough task facing those yet to achieve this life milestone.

Not only are house prices climbing at extraordinary rates, but our ability to afford them simply isn’t matching this pace, with the earnings available to the average person remaining largely static.”

Data and Methodology

Average house price data sourced from Gov.UK.

House price hourly earnings based on the annual increase in house prices divided by the average full-time hours worked per year of 1,903.2.

AveHP defined as Average House Price