We are currently experiencing technical difficulties with our telephone system.
We apologise for any inconvenience and are working to resolve this as soon as possible.
Secured Loans > Could your house be earning you more money than your job?

Could your house be earning you more money than your job?

17th March 2017 | Published by Evolution Money

A recent national report conducted by Halifax has found that people living in nearly one-third of local authority districts in the UK are earning more from simply owning a house than they are from their job.

The report details that surging house prices across the country are rising at a faster rate than many people’s annual salary, particularly when viewed over the course of two years or more. This is the case in 31% of all areas surveyed.

Perhaps unsurprisingly, this trend is most prevalent in London and the surrounding areas. For example, at the upper end of the scale, the average homeowner in Haringey has seen the value of their house shoot up by approximately £91,000 over the course of two years. Roughly, this equals to houses rising by nearly £4,000 per month, which is more than the average homeowner’s monthly income.

First time house buyers

First-time buyers

The problem for non-homeowners across the UK

Even though salaries for people in 69% of areas across the UK at least match the rise in house prices, the problems for first-time buyers remain daunting all the same.

Martin Ellis, housing economist at Halifax, said: “Buoyancy in the housing market over the past two to five years has resulted in homes increasing in value by more than total take-home earnings for the average homeowner in many areas, though mostly in southern England’’.

“While it’s no longer unusual for houses to ‘earn’ more than the people living in them, in some places, there are clearly local impacts. Homeowners in these areas can build up large levels of equity quickly but for potential buyers whose wages have failed to keep pace, the cost of buying a home has become more unaffordable during that time.”

Category: Homepage, Money
This post was written by Evolution Money
Warning: Late payment can cause you serious money problems. For help, go to moneyhelper.org.uk
Representative 28.96% APRC (Variable) - For a typical loan of £20,950 over 85 months with a variable interest rate of 23.00% per annum, your monthly repayments would be £537.44. Including a Product Fee of £2,095.00 (10% of the loan amount) and a Lending Fee of £714.00, the total amount repayable is £45,682.15. Annual Interest Rates ranging from 11.7% to 46.5% (variable). Maximum 50.00% APRC. The loan must be paid back by your 70th birthday. Read more.

Think carefully before securing debts against your home your home may be repossessed if you do not keep up repayments on your mortgage or any other loan secured against it. If you are thinking of consolidating existing borrowing, you should be aware that you may be extending the terms of the debt and increasing the total amount you repay.
© 2024 Evolution Money | Cookie Policy | Terms & Conditions | Fair Processing Notice
Start Here
Please wait

Please wait

Don't leave just yet!

Evolution Money are a multi Award Winning UK finance company with thousands of happy customers!

Award Winning

Our friendly loan advisors can let you know if you're eligible for a loan without affecting your credit score. Why not give us a call today!

Freephone 0800 144 8188

Back to Evolution