Halifax: one in four UK homes earn more than owners

Rising house prices have outpaced earnings in 28% of UK. Is your home earning more than you?

The number of areas where house prices are overtaking earnings has jumped over the last year according to new figures from Halifax.

The bank says rising house prices mean over a quarter of local authority districts across the UK, mainly located in London, the south east and East of England, are now experiencing this phenomenon.

Homes in Three Rivers in Hertfordshire had the biggest gap over the last two years. In this area house prices have jumped £147,990, exceeding the average take home earnings in the area of £49,999 over the same period. As a result, property in the area made almost £98,000 more than owners.

Below are the ten districts where house prices have outpaced earnings by the biggest margin over the last two years.

Local authority	Region	Two-year change in house prices	Net median earnings (2014-2015)	Two-year difference in house prices vs earnings
Three Rivers	East of England	£147,990	£49,999	£97,992
Harrow	London	£147,068	£49,595	£97,472
Greenwich	London	£131,811	£48,543	£83,268
Hillingdon	London	£132,125	£49,976	£82,149
Brent	London	£120,031	£46,884	£73,147
Watford	East of England	£121,646	£49,823	£71,823
Waltham Forest	London	£115,908	£45,230	£70,678
Ealing	London	£115,724	£46,238	£69,486
Cambridge	East of England	£115,650	£49,030	£66,620
Merton	London	£116,119	£50,791	£65,328

Source: Halifax and ONS

Martin Ellis, housing economist at Halifax, said: “Clearly, this is good news for some homeowners. However, it does make conditions tougher for those looking to buy their first home in such areas, with prices being pushed increasingly out of range for many young people.”

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The areas which beat wages over five years

Halifax also looked at house prices versus earnings over the past five years.

In this case, around 9% of areas in the UK have seen average house prices increase by more than average take-home pay, up from 6% last year.

London areas dominate the top ten with Hammersmith and Fulham house prices rising by £248,971. surpassing average take-home pay during the period by an incredible £108,653.

Local Authority	Region	Five-year change in house prices	Net median earnings (2011-2015)	Five-year difference in house prices vs earnings
Hammersmith and Fulham	London	£248,971	£140,319	£108,653
Ealing	London	£206,681	£115,554	£91,128
Haringey	London	£185,913	£116,633	£69,279
Hackney	London	£191,647	£122,531	£69,116
Merton	London	£189,946	£126,383	£63,562
Islington	London	£196,424	£137,571	£58,853
Richmond upon Thames	London	£208,097	£150,142	£57,954
Waltham Forest	London	£167,855	£110,054	£57,802
Greenwich	London	£176,508	£119,408	£57,100
Wandsworth	London	£197,736	£143,572	£54,165

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