Do potential sellers in your area know how much the average house price in the UK has risen over the past 12 months? More than they might think.
More than 4.6 million properties, amounting to more than a fifth (21%) of all privately owned UK homes*, have risen in value by more than the average annual salary in the past year.
That means the average house price in the UK has increased by £30,500** over the past 12 months.
So what’s happening at a regional level and how can agents use this information to better understand their local market?
Homes in the South West are most likely to be earning more than the average salary in the region.
In the past 12 months alone, 29% of homes in the region increased in value by more than the average regional salary (which currently stands at £29,000).
Houses in the South East are the second highest top earners compared to the average salary, with 28% of properties increasing in value by more than the average regional salary of £32,900 over the last 12 months.
London then comes third on the list due to higher salaries earned there. However, nearly a quarter of homes in the capital went up by more than the average London wage of £37,300 in the past year.
Despite homes in the North and Midlands rising less in monetary terms than their Southern counterparts, the lower house prices and the rate of house price growth has resulted in a large proportion of homes rising at a higher level than local salaries. This includes:
In Scotland, the figure is 9%, while in Wales it is 22%.
Home values in some commuter hotspots have also outperformed local salaries over the last 12 months.
And this comes as no surprise as the ‘search for space’ and the ‘reassessment of home’ continues to push inner-city workers to look further afield.
The commuter belt of London is a prime example, with 54% of homes in Mole Valley, Surrey, and 46% of homes in St. Albans, increasing in value by more than the average local wage.
The shift among some homeowners from urban to more rural living during the pandemic has also resulted in house prices rising faster in countryside and coastal areas.
Some of the largest property value increases when compared to average local salaries include:
We know from recent data that 42% of homeowners are considering putting their home on the market.***
And with one in five homes increasing in value by more than the average salary, there’s still plenty of scope to nudge even more inactive homeowners into selling. Particularly as high rates of inflation post-lockdown are set to fuel further average house price increases.
That’s why we’re continuing to drive Zoopla users towards our My Home valuation tool, to help them understand what their home is really worth.
This is all part of our masterplan to deliver more valuation leads to our agent partners, ensuring they’re set up for success to take advantage of market momentum. Both now and in the future.
Want to find out we can help you target potential sellers in your local area?
*Number of properties in the UK based on ONS data
** Average salary based on ONS data
***Zoopla internal data from the first three weeks of the campaign, compared to two weeks prior to the start of the My Home campaign