Nearly 50,000 homes in south Essex are earning their owners more in value each year than the average salary.
Analysis carried out by Zoopla found one in five properties across the country is increasing in price at a higher rate in a single year than the average worker is paid.
An estimated 4.6million privately-owned homes have jumped in value by more than £30,500 across the UK in the past 12 months.
In the East of England alone, more than half a million homes have increased in value at a higher rate than the region’s average salary of £31,500.
That is nearly one in four homes.
In South Essex, both Basildon and Southend have seen 13,000 homes have seen their value increase above the average salary.
That works out at about 21 per cent of homes in Southend and 22 per cent in Basildon.
Basildon’s average salary is around £30,600 and in Southend it is £33,300.
Read more:
The number of homes in Rochford which have seen price increases above the area’s average salary of £27,200 is 7,000 (17 per cent).
This drops to 5,000 (15 per cent) properties in Castle Point, where the average income is £28,700.
Rochford still has the highest average property price (£378,000) in south Essex according to Zoopla, with Castle Point (£351,000) in second place.
The average house price in Southend is £342,000 and in Basildon it is £331,000.
Why are house prices increasing so much?
Zoopla says the demand from potential buyers has been strong since the housing market reopened after the first national lockdown.
Buyers are said to be looking for more space and a different lifestyle as they no longer had to commute to work on a daily basis.
The stamp duty holiday is also thought to be fuelling the momentum in the housing market.
Gráinne Gilmore, head of research at Zoopla, said: “Hundreds of thousands of households have made the move into their new home over the last year.
“But activity has been so high, it has eroded the stock of homes for sale, which has put upward pressure on house prices, with values rising by up to 9% in some parts of the country.”
Credit: Source link
