Houses earn more than owners in 18% of areas

Homes in 18% of local authority districts have earned more than their owners over the past two years, according to research.
The study by lender Halifax compared the growth in property values with people's average take-home earnings in 2016 and 2017.
It found that the growth of prices in Barnet in London, for example, was €52,256 more than the average earnings, the biggest difference in the survey.North Hertfordshire had the second biggest gap, at €40,903, while Canterbury, Guildford and Oxford also rated highly.The percentage of areas where house price growth outpaced earnings fell, however, from 31% in 2016 to 18% in 2017.There was also a clear divide between the north and the south, with 86% of affected areas being in London, the South East, South West or the East of England.This is a slight decrease from the 93% seen in the previous year.
None of the districts in the north east of England, Yorkshire and the Humber, Scotland and Northern Ireland saw average house price growth outpace average take-home earnings during the two-year period.Aside from southern England, other places where house price growth outstripped earnings growth included Harborough in the East Midlands, with house price gains of €19,662 more than earnings.The Ribble Valley in the North West had a €8,217 gap, Tamworth in the West Midlands had €3,226 and Denbighshire in Wales had €793.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.
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"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."
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