House prices have risen by more than average net earnings in nearly one in five local authority districts across the UK.
Data from Halifax shows that over the past two years, the fastest house price growth has been in London and the south east, with eight London boroughs appearing in the top ten districts where house price growth has outstripped average earnings.
The research also demonstrates that over the past five years, 23 local authority areas in the UK saw average house prices increase by more than the total average pay.
House prices nationally increased by 9% in 2014, the biggest annual rise since 2007. Average prices rose particularly sharply in London at 16% and the south east at 11%, and as a result, average prices increased by more than total take home pay in 25% of local authority areas.
‘The housing market recovery over the past couple of years has resulted in some substantial prices rises in some areas of the country, particularly in London and the South East. This has resulted in homes increasing in value by more than total take home earnings for the average home owner in some areas of the country,’ said Martin Ellis, housing economist at the Halifax.
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