A quarter of all property in the UK is experiencing price growth that is outpacing the average salary.

Summary:

• 1 in 4 properties within the UK are increasing in value so rapidly it is ‘earning’ more than their owner
• According to Halifax, the average cost of property in the UK is now £212,430, a year-on-year increase of 9.7%
• The average property price in the UK is eight times the average income but this is expected to increase

A quarter of properties in the UK have ‘earned’ more than their owners since 2014.

The housing market continues to have a shortage of stock that can’t keep up with demand, with the number of properties for sale falling to a new record low last November, according to RICS. There are now 15 buyers for each property on the market.

This mismatch has led to house prices increasing substantially in some areas of the country. According to Halifax, the average cost of a house or flat in the UK has gone up 9.7% over the past year to £212,430. The average UK salary is £26,500.

A recent report from Santander suggests that incomes will not keep pace with the rise in property prices. Property values are projected to rise by 5% this year with wages set to increase by only 2.8%, and this trend is expected to continue until at least 2018.

Miguel Sard, Managing Director of mortgages, Santander UK said: “Property price inflation will tip many existing home owners into the million-pound price bracket. The current property market is buoyant and the deals available to new and existing owners are extremely competitive, so those wishing to buy or move should do so.”

At present in the UK, the average property price is around eight times the average income, but by 2030 this is expected to hit a multiple of 9.7

Source: Select Property