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Zoopla reveals where property prices are growing faster than salaries

29th July 2017

  • Property value growth outpacing salary increases by 7.99 per cent in Luton - vs UK average of 1.13 per cent
  • Sunderland and Chelmsford top the list of locations where salaries are rising faster than property prices
  • London, Guildford and Winchester are the least affordable places to buy based on local salaries
  • Properties in Newcastle, Bradford and Hull are most affordable when compared to the average local salary
  • Property price growth in the popular commuter town of Luton has outpaced rises in the average salary by 7.99 per cent over the past year, according to new data from property website Zoopla. The average property price in the Bedfordshire town has grown by an impressive 5.06 per cent (£12,499) since June 2016, in contrast to the average salary earned by residents, which has decreased by 2.94 per cent (£970) over the same period. The UK as a whole saw property values outgrow the average wage increase by 1.13 over the past year, with the average home in the UK increasing in value by 0.53 per cent year-on-year, versus a dip in the average salary to the tune of -0.60 per cent.

    Zoopla compared the growth in average property values with annual salary figures from job search engine Adzuna across 55 of Britain’s biggest towns and cities to reveal where property prices are growing faster than wages. Not far behind Luton is nearby Stevenage, where house price growth is 6.41 per cent higher than average salary growth – property prices in the area have risen by an average of 1.86 per cent (£5,725) over the past year, whereas salaries in the town have decreased by 4.55 per cent (£1,530). Strong house price growth of 4.4 per cent (£18,544) sees High Wycombe in third place, as salaries have decreased by 1.03 per cent (£308) – a difference of 5.43 per cent.

    House hunters seeking more affordable areas of Britain should look to Sunderland, which tops the table of locations where salaries have been growing at a higher rate than property prices. Salaries in the Tyne and Wear city have witnessed an average rise of 2.3 per cent (£650) in the past year, while property prices have declined by an average of 5.52 per cent (£8,185) – marking a 7.81 per cent difference. Chelmsford places second, thanks to the strongest average salary growth of any of the locations analysed. Salaries in the commuter belt city have grown by an average of 8.48 per cent (£2,429) according to Adzuna data, outperforming house price increases which stand at 0.81 per cent (£3,090) on average.

    The data also reveals the current disparity between average property values and local salaries. London tops this table, with the average house in the capital currently valued at almost 20 (19.53) times the average salary. The south-eastern towns of Guildford and Winchester place second and third with average property prices standing at 18.39 and 17.78 times more than the average salary respectively.

    Meanwhile, the most affordable location is Newcastle where house prices are only 4.21 times the average salary of £29,777. Bradford and Hull closely follow the riverside city, as average property prices in both cities are just 4.62 times the average salary.

    Lawrence Hall, spokesperson for Zoopla comments: “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.

    “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.”

    Top 10 least affordable locations based on annual property and salary growth

    Rank

    Location

    Average property price

    (June 2017)

    Average property price growth since June 2016 (%)

    Average salary (June 2017) 

    Average salary growth since June 2016 (%)

    Salary growth versus property price growth (%)

    1

    Luton

     £259,715

    5.06%

     £32,067

    -2.94%

    -7.99%

    2

    Stevenage

     £313,216

    1.86%

     £32,094

    -4.55%

    -6.41%

    3

    High Wycombe

     £440,060

    4.40%

     £29,542

    -1.03%

    -5.43%

    4

    Salford

     £157,426

    5.05%

     £27,472

    -0.32%

    -5.37%

    5

    Crawley

     £329,624

    1.33%

     £29,517

    -3.38%

    -4.71%

    6

    Chester

     £254,104

    -1.45%

     £27,939

    -5.44%

    -3.99%

    7

    Wirral

     £227,466

    2.55%

     £27,033

    -1.09%

    -3.64%

    8

    Slough

     £387,777

    0.59%

     £30,980

    -2.76%

    -3.35%

    9

    Rochdale

     £145,115

    -1.94%

     £24,458

    -5.21%

    -3.28%

    10

    Worcester

     £258,575

    2.17%

     £27,937

    -1.01%

    -3.18%

    Top 10 most affordable locations based on annual property and salary growth

    Rank

    City/Town

    Average property price

    (June 2017)

    Average property price growth since June 2016 (%)

    Average salary 

    (June 2017)

    Average salary growth since June 2016 (%)

    Salary growth versus property price growth (%)

    1

    Sunderland

     £140,207

    -5.52%

     £28,916

    2.30%

    7.81%

    2

    Chelmsford

     £385,677

    0.81%

     £31,052

    8.48%

    7.68%

    3

    Plymouth

     £199,876

    -1.93%

     £29,397

    5.47%

    7.40%

    4

    Aberdeen

     £216,498

    -2.07%

     £32,280

    2.84%

    4.91%

    5

    Southend

     £289,763

    3.90%

     £31,212

    8.23%

    4.33%

    6

    Guildford

     £592,818

    -1.57%

     £32,227

    2.68%

    4.26%

    7

    Swansea

     £166,874

    -0.78%

     £28,611

    2.59%

    3.38%

    8

    Cardiff

     £233,253

    -0.23%

     £30,597

    2.47%

    2.70%

    9

    Derby

     £193,835

    -0.78%

     £30,192

    1.87%

    2.65%

    10

    Winchester

     £543,619

    -0.20%

     £30,583

    2.11%

    2.31%

    Top 5 locations for highest property value to salary ratio

    Rank

    City/Town

    Average property

    price

    Average

    salary 

    Average property price to average salary ratio (X:1)

    1

    London

     £766,350

     £39,232

    19.53

    2

    Guildford

     £592,818

     £32,227

    18.39

    3

    Winchester

     £543,619

     £30,583

    17.78

    4

    Oxford

     £503,932

     £32,682

    15.42

    5

    Chichester

     £427,249

     £28,336

    15.08

    Top 5 locations for lowest property value to salary ratio

    Rank

    City/Town

    Average property price

    Average salary 

    Average property price to average salary ratio (X:1)

    1

    Newcastle

     £125,239

     £29,777

    4.21

    2

    Bradford

     £129,244

     £27,955

    4.62

    3

    Hull

     £132,963

     £28,756

    4.62

    4

    Sunderland

     £140,207

     £28,916

    4.85

    5

    Middlesbrough

     £143,033

     £27,292

    5.24

    Sources: Zoopla (June 2016 to June 2017), Adzuna (June 2016 to June 2017)

    - Ends -

    For further information, please contact Stefanie Midmer on 0203 872 5697 / 07710 095 081 or stefanie.midmer@zoopla.co.uk.

    Notes to editors

    Zoopla is the UK's most comprehensive property website, focused on empowering users with the resources they need to make better-informed property decisions. We help consumers both find their next home and research the market by combining hundreds of thousands of property listings with market data, local information and community tools.

    At Zoopla we are fans of transparency and everything we do is aimed at making the market more efficient for both property consumers and advertisers alike. Zoopla has rapidly become the UK’s leading online destination for property consumers to search for homes and do their market research and the favoured online marketing partner for UK estate agents, letting agents and property developers.

    Launched in 2008, Zoopla has since been one of the fastest growing websites in the UK, now attracting over 40 million visits per month and we are proud to have collected numerous awards and accolades along the way, including being named one of the Top 10 UK Tech Companies (Guardian) and one of the Top 10 Most Innovative UK Companies (Smarta).

    Zoopla is part of ZPG Plc which was founded in 2007 and has a highly-experienced management team, led by Founder & CEO, Alex Chesterman.

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