House price growth outpaces wage increases in a fifth of the UK with biggest gap in London's Barnet area

 
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Political Uncertainty Dampens UK Housing Market
Homeowners in Barnet could earn more from selling their houses than from working (Source: Getty)

House price growth has outstripped wage increases in a fifth of the UK.

In almost one in five (18 per cent) of UK areas, homeowners earned more from the rising value of their houses than they did from working, according to Halifax, the UK's biggest mortgage lender.

London dominated the list of local authority districts with gaps between house prices and pay.

Read more: The British towns with the highest growth in house prices so far this year

Barnet showed the biggest gap, as house prices exceeded take-home earnings in the area by £52,256, the highest in the country. This was the equivalent of £2,177 a month.

However, the proportion of areas where prices are growing faster than wages has decreased to 18 per cent, down from 31 per cent.

Of those with a gap, 86 per cent, or 61 areas, were in London, the South East, South West or East of England. Last year 111 of the 119 areas were across the four regions.

Read more: Biggest quarterly fall in London house prices for nine years recorded

A faltering property market in London and the South contributed to the decrease in the number of areas where prices exceeded pay.

Russell Galley, managing director at Halifax, said: “Over the past two years, we have seen house price growth and earnings converge at a national level, leading to a drop in the total number of areas where the average house price rise is greater than owners’ take-home earnings.

“Despite the slowdown in house price growth in southern England, it has still outpaced wages across most of the region. This means that middle earners are also facing a challenge getting on to the property ladder.”

Read more: Global house prices moving in sync

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