Property prices outstripping salary growth in Luton and Stevenage
The average property price was up by 1.86 per cent year-on-year in Stevenage, but the average salary was down by 4.55 per cent - Credit: Archant
Property value growth is outpacing salary increases more rapidly in Luton and Stevenage than anywhere else in Britain, according to new statistics.
Zoopla and job search engine Adzuna looked at the annual property price and salary growth of residents in 55 of Britain’s biggest towns and cities.
In Luton, property price growth has outpaced average salary increases by 7.99 per cent in the past year.
The average property price in the Bedfordshire town was £259,715 in June 2017 – year-on-year growth of 5.06 per cent.
However, the average salary stood at £32,067, down by 2.94 per cent since June 2016.
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In Stevenage, the average property price in June was £313,216, up 1.86 per cent year-on-year.
But the average salary was down 4.55 per cent to £32,094, leaving salary growth versus property price growth of -6.41 per cent.
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Country-wide, property values outgrew average wage increases by 1.13 per cent over the year, with average salaries down by 0.6 per cent while property prices increased by 0.53 per cent.
Lawrence Hall, spokesman for Zoopla said: “Getting on the property ladder can be tough, especially if you’re looking to buy in an area where property prices are rising faster than salaries.
“If you’re a first-time buyer and can be flexible where you buy, then why not look at the areas where salaries are rising faster than property prices. For example, in Chelmsford property prices are rising at a steady rate, but the average salary is rising even faster.”
Chelmsford came second on the list of most affordable locations based on annual property and salary growth, behind Sunderland. However, the average property price there was £385,677, meaning it’s unaffordable to many.
Lawrence added: “The data also shows a clear affordability north-south divide, where the top 10 most unaffordable places regarding house price to salary ratio are all in southern England. In contrast, the top 10 locations where house prices are more in line with salaries, are predominantly in northern England.”
