Camden homeowners earned six-figures from houses in 2015
PUBLISHED: 14:31 22 January 2016 | UPDATED: 14:31 22 January 2016
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Camden homeowners received the equivalent of a second salary of £125,425 in house price growth in 2015 according to figures from emoov.co.uk.
The online estate agent found that average asking prices in the borough rose from £983,162 to £1,108,489 year on year to January 2016, equivalent to an hourly wage of £75.
This means that the average house in Camden earns three times the average worker in the borough, where the typical salary is £37, 560.
Camden and Westminster saw the biggest rises in the country in a sign that prime London is continuing to expand from its traditional heartland of Kensington & Chelsea.
Across the country property on average earned more than the average full-time employee with asking prices increasing £27,264 in 2015, compared to the average UK salary of £26,500.
Separate research from Knight Frank found, unsurprisingly, that households in London perceived that the value of their home had risen in December 2015 and expected it to rise further this year.
The estate agent’s house price sentiment index is a good indicator of future house price trends and found that Londoners continue to expect strong growth in house prices over the next year, with confidence at the highest level since May 2014.
Gráinne Gilmore, head of UK residential research at Knight Frank, said: “Households expect house prices to rise again in 2016. The future sentiment index is now sitting just above where it was in January 2015, and we now know that UK house prices climbed by 4.5 per cent during the course of the year.
“The latest house price sentiment index suggests that monetary and political housing policies have not had a dramatic impact on households’ assessment and outlook for the value of their property.”
The survey pointed out that homeowner sentiment remained resilient despite global economic turbulence.
According to Gilmore this could be thanks to the Bank of England’s indication that interest rates are likely to remain at their current low rate for the near future.
“Mortgage borrowers are the most positive about the outlook for house prices over the next year, perhaps reflecting the anticipation of a longer period of ‘ultra-low’ rates after the Bank of England’s decision to hold rates this month, and signals from rate-setters that the UK base rate could be at 0.5 per cent for some time yet.”
The Royal Institution of Chartered Surveyors (Rics) also reported an “unusually buoyant” December for the housing market, with demand remaining high thanks to mild weather as well as buy-to-let investors hoping to beat the 3 per cent rise in Stamp Duty for second homes due in April.
Rics said that the demand/supply situation which has put an upward pressure on house prices continued in December, with buyer inquiries rising at a faster pace than the supply of new homes coming on to the market for 11 months in a row.
But, for the first time since January 2015, surveyors reported that the number of new homes coming on to the market is generally rising. An overall balance of 4 per cent of surveyors noticed a rise rather than a fall.