Who knew? Luton's property market outstrips wages
Property price growth in Luton has outpaced rises in the average salary by 7.99 per cent over the past year, according to new data from property website Zoopla.
The average property price in the town has grown by an impressive 5.06 per cent (£12,499) since June 2016, in contrast to the average salary earned by residents, which has decreased by 2.94 per cent (£970) over the same period. The UK as a whole saw property values outgrow the average wage increase by 1.13 over the past year, with the average home in the UK increasing in value by 0.53 per cent year-on-year, versus a dip in the average salary to the tune of -0.60 per cent.
Zoopla compared the growth in average property values with annual salary figures from job search engine Adzuna across 55 of Britain’s biggest towns and cities to reveal where property prices are growing faster than wages. Not far behind Luton is nearby Stevenage, where house price growth is 6.41 per cent higher than average salary growth – property prices in the area have risen by an average of 1.86 per cent (£5,725) over the past year, whereas salaries in the town have decreased by 4.55 per cent (£1,530). Strong house price growth of 4.4 per cent (£18,544) sees High Wycombe in third place, as salaries have decreased by 1.03 per cent (£308) – a difference of 5.43 per cent.
House hunters seeking more affordable areas of Britain should look to Sunderland, which tops the table of locations where salaries have been growing at a higher rate than property prices.
The data also reveals the current disparity between average property values and local salaries. London tops this table, with the average house in the capital currently valued at almost 20 (19.53) times the average salary. The south-eastern towns of Guildford and Winchester place second and third with average property prices standing at 18.39 and 17.78 times more than the average salary respectively.
Meanwhile, the most affordable location is Newcastle where house prices are only 4.21 times the average salary of £29,777. Bradford and Hull closely follow the riverside city, as average property prices in both cities are just 4.62 times the average salary.