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  1. ITV Report

Homes across the UK 'earn more than their owners'

Houses in Fulham where prices increased by almost £200,000 over the past two years.. Photo: PA

The recovery in the housing market has led to homes in a fifth of areas across the UK "earning" more than their inhabitants, according to new research.

Over the past two years, average house prices have increased by more than wages in 73 out of 384 local authority districts surveyed by Halifax.

Eight out of the top 10 places where house prices have increased more than wages were in London, whilst the remaining two were in the South East.

Martin Ellis, a housing economist at Halifax, said although rising prices was welcome news for many home owners, it also reflects the challenge faced by those struggling to get on the property ladder, particularly in popular locations.

It is challenging news for those looking to buy their first home in such areas, with prices being pushed out of range for many young people.

– Martin Ellis, Halifax
Houses prices have been rising faster than people can earn in 73 local authority districts across the UK. Credit: PA

The biggest rise was in Hammersmith and Fulham, where house prices have increased by almost £200,000 over the past few years. The average salary in Fulham is just under £57,000.

In eight local authorities across the UK, the increase in prices over the past two years has outstripped earnings over the same time by more than £80,000.

Halifax took their figures from the Office of National Statistics. The top ten places where houses "earned" more than the average local wage are as follows:

Hammersmith and Fulham, London

  • Average wage: £56,698
  • Average house price increase: £199,930

Wandsworth, London

  • Average wage: £58,345
  • Average house price increase: £161,105

Ealing, London

  • Average wage: £46,494
  • Average house price increase: £136,895

Kensington and Chelsea, London

  • Average wage: £66,746
  • Average house price increase: £156,388

Elmbridge, South East

  • Average wage: £56,909
  • Average house price increase: £145,512

South Buckinghamshire, South East

  • Average wage: £51,692
  • Average house price increase: £139,249

Hackney, London

  • Average wage: £49,622
  • Average house price increase: £135,072

Richmond upon Thames, London

  • Average wage: £59,353
  • Average house price increase: £140,402

Southwark, London

  • Average wage: £51,391
  • Average house price increase: £130,561

Brent, London

  • Average wage: £45,672
  • Average house price increase: £124,464

Outside of London in the commuter belt house prices have also been rising faster than people can typically earn a wage, particularly in picturesque areas.