Two-fifths of UK workers earned less than the increase in the average UK home’s value last year, new research shows.
House prices increased by an average of £18,119 in 2015, equivalent to nearly 70% of the average wage at £26,426.
The gap closed slightly with the annual property earning £5,800 less than the previous year, while workers’ annual earnings increased by £400
London homes earned over £46,000 in the last year, £10,000 more than the average salary in the capital.
Post Office Money’s latest Cost of Buying & Moving study, compiled by the Centre for Economics and Business Research, found that workers needed to wait until 4 September before their earnings equalled the annual increase of the average UK home.
A typical home’s earnings nearly matched the starting salaries of a number of key UK professions, including graduate nurse (£21,692), teacher (£22,023), junior hospital doctor (£22,636) and police officer (£23,317). They outpaced the average soldier’s wage (£18,125).
John Willcock, head of mortgages at Post Office, said: “Although the rate at which property prices have increased has slowed we have still see a big increase in prices over the last year.
“While this is good news for those who already own their home and will see their property wealth increase, our study highlights the uphill struggle that buyers and movers looking to climb the property ladder continue to face, especially when attempting to get on that all-important first rung.”