Average house prices in the UK have hit another record high, despite an interest rate rise and the UK facing a cost of living crisis.
Monthly house prices grew 1.4% in March - the biggest increase in six months - pushing the average UK house price up to a record high of £282,753, according to the Halifax House Price index. In the North East, the overall average price of a property is £162,692 - a 9.5% increase on last year.
As house prices rise at an astonishing rate and earnings remain more or less stagnant, the latest research from estate agent comparison site, GetAgent.co.uk, reveals how much average house prices went up compared to the average wage over the past year.
Read more: Competition for houses in two North East areas among the fiercest in the UK
The current average annual income in Britain is £31,620. At the same time, GetAgent’s analysis shows that the average house price in Britain has increased by almost 10% in the past year, a jump of £24,544 in just 12 months.
This means that the average person has earned £7,076 more than their property despite the pandemic house price boom. In the North East, we looked at the property rise to the average salary for each area to see how much houses 'earned'.
South Tyneside came out top. The £12,632 property price increase over the last year was 48% of the local average salary of £26,199. In second spot was Newcastle where property prices rises added up to 45% of the local salary, followed by Sunderland at 44%.
Gateshead saw the lowest increase. The average house price there in January 2022 was £141,246, a £4,510 increase on 2021 which is 16% of the average salary of £27,309.
Area: Average house price Jan 2021; house price Jan 2022; increase; annual gross salary; increase as %age of salary
South Tyneside: £138,102; £150,733; £12,632; £26,199; 48%
Newcastle: £168,885; £185,610; £16,725; £30,272; 45%
Sunderland: £124,297; £137,657; £13,360; £23,870; 44%
Northumberland: £170,449; £181,261; £10,812; £26,157; 41%
North Tyneside: £174,591; £185,356; £10,765; £28,533; 38%
County Durham: £111,765; £118,953; £7,188; £27,859; 26%
Gateshead: £136,736; £141,246; £4,510; £27,309; 16%
