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Average home earns more than two-fifths of workers

Christina Hoghton
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Christina Hoghton

Last year the average property rose in value by a greater level than the salaries of 40% of UK workers

You might feel like you work hard for your money, but chances are your property earns more than you do in a year, according to new research from Post Office Money.

It reckons that two-fifths of UK workers earned less than the increase in the average home’s value in the last year.

House prices increased by an average of £18,119 over the last year – 69% of the average wage (£26,426). The average worker took home earnings of £26,426.

Homes earn more than soldiers

A typical home’s earnings now nearly match the starting salaries of some of the UK’s most-relied upon professions, including junior hospital doctors (£22,636), teachers (£22,023), and police officers (£23,317), while they outpace that of a solider (£18,125).

John Willcock, head of mortgages at Post Office Money, said: “Although the rate at which property prices have increased has slowed compared with the dramatic rises seen in 2014 and early 2015, we have still see a big increase in prices over the last year. This has been driven by demand for housing outstripping supply, with the number of properties coming to market failing to match the needs of people looking to buy.

“Our study highlights the uphill struggle that buyers and movers looking to climb the property ladder continue to face, especially when attempting to get on that all-important first rung.”

Houses in the nation’s capital earned £46,276 – over £10,000 more than the average London salary (£36,109). Meanwhile, properties in Scotland have bucked the trend and fallen in value by £502.