Is your home earning you more than your salary?
15th July 2021
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4.6m homes have increased in value by more than the average UK salary over the past 12 months, equating to 21% of all privately owned homes across the country *
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Homes in the South West, South East and London are most likely to have increased by more than the average regional salary over the last year
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In some parts of the UK, such as Hastings and Adur in Sussex, 6 in 10 homes have increased in value by more than the average salary
More than 4.6 million properties, amounting to more than a fifth (21%) of all UK homes, have risen in value by more than the average annual salary in the past year, according to new research released today from Zoopla.
The data, compiled from Zoopla’s monthly estimates for every home in the country, found that there are 4,635,000 private homes in the UK that rose in value by more than £30,500, the average UK salary**, in the past 12 months.
Homeowners who want to find out how much their home could be worth and see if it’s earned more than them, can visit https://www.zoopla.co.uk/home-values/
A Southern advantage
On a more local basis, homes in the South West are most likely to be earning more than the average salary in the region. In the past 12 months alone, 29% of homes in the region increased in value by more than the average regional salary (which currently stands at £29,000).
Homes in the South East are the second highest top earners compared to the average salary. Twenty eight per cent of properties increased in value by more than the average regional salary of £32,900 over the last 12 months.
London, which many may have expected to come top, comes third on the list, due to the higher than average salaries earned there. Nearly a quarter (24%) of homes in the capital went up by more than the average London salary of £37,300 in the past year.
Making headway in the North
Despite homes in the North and Midlands rising less in monetary terms than their Southern counterparts, the lower house prices in these regions and the pace of house price growth means a notable proportion of homes are still rising at a higher level than local salaries.
Nearly one in five homes (18%) of homes in the North West, 17% of homes in the East Midlands, 14% of homes in the West Midlands and one in ten homes (9%) in the North East have gone up in value by more than the average salaries in these areas in the past year. In Scotland, the figure is 9%, whilst in Wales it is 22%.
Commuter momentum
Home values in some commuter hotspots have also outperformed local salaries over the last 12 months. In Mole Valley, Surrey, more than half (54%) of homes increased more than the average local salary, and in St Albans, that figure stands at 46%.
Countryside and Coast
The shift among some homeowners from urban to more rural living during the pandemic has also resulted in house prices rising faster than local salaries in more rural and coastal areas. In Hastings, East Sussex, a whopping 62% of homes increased in value more than the average salary in the area of £25,800 in the past year. The figure is 60% in Adur, also in Sussex. Meanwhile, Dorset saw 47% of homes increase more than the average salary. The figure is 46% in the Cotswolds.
Homeowners looking to find out if their home is earning them more than their salary can simply head to Zoopla's My Home for an estimate of how much their home could be worth.
Figure 1: Proportion of homes that have increased in value more in past 12 months than the average salary for the region:
|
Region |
Average salary |
Average property value |
% of homes that have increase in value more than average regional salary in past 12 months |
Number of homes that have increased in value more than average regional salary in past 12 months |
|
South East |
£32,900 |
£379,000 |
28% |
927,000 |
|
London |
£37,300 |
£521,000 |
24% |
625,000 |
|
South West |
£29,000 |
£300,000 |
29% |
620,000 |
|
Eastern |
£31,500 |
£333,000 |
23% |
514,000 |
|
North West |
£27,800 |
£189,000 |
18% |
474,000 |
|
Yorkshire and The Humber |
£28,700 |
£183,000 |
17% |
321,000 |
|
East Midlands |
£28,100 |
£224,000 |
17% |
294,000 |
|
West Midlands |
£30,200 |
£218,000 |
14% |
289,000 |
|
Wales |
£28,200 |
£188,000 |
22% |
256,000 |
|
Scotland |
£34,100 |
£168,000 |
9% |
165,000 |
|
North East |
£33,700 |
£144,000 |
9% |
88,000 |
|
UK |
£30,500 |
£265,000 |
21% |
4,635,000 |
Gráinne Gilmore, Head of Research at Zoopla, comments:
“There has been strong demand from home buyers since the housing market reopened after the first lockdown in May last year. This demand has been underpinned by people searching for more space, making a lifestyle change or climbing onto the first rung of the property ladder. At the same time, the savings of up to £15,000 on offer as a result of the stamp duty holiday in the 12 months to July also encouraged people to make a move.
“Hundreds of thousands of households have made the move into their new home over the last year, but activity has been so high, it has eroded the stock of homes for sale, which has put upward pressure on house prices, with values rising by up to 9% in some parts of the country.
“When this price rise is translated into pounds and pence, it means one in five homes have risen in value by more than the equivalent of a year’s earnings over the space of 12 months. Anyone can get an instant estimate on the value of their home at MyHome on Zoopla, where they can also link directly to a Zoopla estate agent for a valuation.“
Figure 2: Top ten areas in the UK where properties have increased more in the past 12 months than average salary for that area:
|
Area |
Average salary |
Average property value |
% of homes that have increased in value than average salary the area in past 12 months |
Number of homes that have increased in value more than average salary in the area in past 12 months |
|
Hastings |
£25,800 |
£285,000 |
62% |
18,000 |
|
Adur |
£26,700 |
£382,000 |
60% |
14,000 |
|
Mole Valley |
£30,400 |
£649,000 |
54% |
17,000 |
|
Rother |
£27,200 |
£358,000 |
51% |
21,000 |
|
Dorset |
£28,000 |
£352,000 |
47% |
71,000 |
|
St Albans |
£42,600 |
£663,000 |
46% |
24,000 |
|
Cotswold |
£29,900 |
£442,000 |
46% |
21,000 |
|
Sevenoaks |
£35,300 |
£501,000 |
45% |
24,000 |
|
Bromley |
£41,900 |
£552,000 |
45% |
51,000 |
|
South Lakeland |
£27,900 |
£295,000 |
45% |
21,000 |
-ENDS-
*Number of properties in the UK based on ONS data
** Average salary based on ONS data
Notes to Editors
Methodology: Zoopla Research based on 29 automated valuations from 25th June 2021. Social housing and non residential property excluded. Figures rounded to nearest £1,000 for property values and 1,000 for the number of homes.
- Ends -
For further information, please contact PR Team on pr@zoopla.co.uk or +44 (0)20 3873 8770.
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