You probably dont need telling that house prices have risen faster than wages in recent years. But you may be astonished to discover how much faster.
Over the past year, the average UK property has risen 12%. Wages climbed a meagre 0.6%.
The average house tookhome29,339 over the year, some2,000 more thanthe average UK worker, who earned27,271 before tax.
In practice, that means your home may earn more than you.
Properties not onlyearned more than three out of five workers, theyalso enjoyed a vastly bigger pay rise. As house price growth picked up, the average home returned20,000 more than one year earlier, while wagesincreased by just 169.
Unsurprisingly, London homes were the real fatcats, earning 80,000 in the last year, nearly twice as much as the average salary in the capital.
Happy At Home
These ridiculousfigures, which appear in the Post Offices Cost of Buying & Moving study, show just how distorted our housing market has become.
Bricks and mortar earned more than the starting salary of a junior hospital doctor (22,636), graduate nurse (21,388), teacher (22,023), police officer (23,317) and soldier (17,945).
And unlike these hard-working professionals, theydidnt even have to leave the house.
These figures will be especially disheartening if youre scrambling to save for a deposit to buy a property. Over the last year, youve fallen even further behind.
No wonder the number of first-time buyers has fallen almost 30% in the last three months, according to new research from e.surv.
And those that are making the stretch our borrowing ever larger sums to do so.
Some homeowners might feel smug, although I suspect most wont. Climbing the property ladder is harder than ever, as the next rung of the ladder gets further away.
More than four million young homeowners are stuck in their first home, according to Santander Mortgages, partly because theycant afford to make the leap to somewhere nicer.
When houses earn more than workers, even homeowners suffer in the end.
House prices cant keep rising 20 times faster than wages forever. New buyers should resist the temptation to chase prices higher, especially with the Bank of England set to hike interest rates next year.
Your home wont be the main breadwinner forever. Forecasts suggest it is in line for a 0.8% pay cut next year, and about time too. Because if your home earns more than you do, whats the point of working at all?
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