Houses in Haringey earn £91k more than their owners do
PUBLISHED: 16:59 17 March 2017 | UPDATED: 16:59 17 March 2017
Homeowners in Haringey could be quids in, with the average home earning £91,000 MORE than residents earn in two years, but those hoping to buy in to the area are left out in the cold.
Haringey has the biggest gap between rising house values and earnings in the UK, according to a report from Halifax.
A house in the borough can ‘earn’ over £91,000 more than its owner does at work over a two year period
Inflating property prices benefit homeowners, but stagnating wages means buyers increasingly struggle to get on the ladder.
Martin Ellis, Halifax’s housing economist said:
“While it’s no longer unusual for houses to ‘earn’ more than the people living in them in some places, there are clearly local impacts.
“Homeowners in the area can build up large levels of equity quickly, but for potential buyers whose wages have failed to keep pace, the cost of buying a home has become more unaffordable during that time.”
House prices in Haringey have risen by £139,803 on average in two years, whilst the average take-home earnings for residents in the same time were £48,353.
Looked at over a five years, the differential in Haringey is even starker.
Property prices rose by £242,121, with the average take-home pay totalling £123,300 in the same period.
A report from the Office of National Statistics published today calculated that house prices in the borough are 15.6 times that of annual earnings.
According to Zoopla, the average house price in Highgate has gone up by 50.34 per cent in five years, gaining £475,287 in value.