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Are dream houses earning more than buyers?
Gloom is spreading among many potential UK homebuyers who learn that their desired homes are earning more than they do, thanks to the ever-widening gap between wages and house prices.
Seeing the chances of purchasing a house slip further and further away is not a feeling any potential buyer wants to experience – and as new figures show, the rapid increase in house prices is hard to ignore.
For some who already own, this is welcome news as inflation increases their asset wealth, removing the necessity to fund larger deposits for their next purchase. But the figures may pose a potential problem for the market’s future, as the number of new buyers entering the market could begin to dwindle, leading to a greater slowdown in sales across the country.
The south-east is currently exhibiting the greatest gains for homeowners, with those in Three Rivers, Hertfordshire enjoying an increase of £147,000 in two years – almost triple the average wage for the area.
While the largest benefits to homeowners are focused around London and the south-east, many other areas such as east and West Midlands are also enjoying a bump in value – albeit a little less extreme – gaining almost £20,000 in value per home during 2014 and 2015.
But is it all good news? For those living in highly desirable areas, absolutely – there will always be a steady stream of buyers more than happy to empty their wallets to move into more valuable homes.
Those in less sought-after regions, however, are likely to struggle to find people who can afford soaring prices, ultimately stifling social mobility for potential buyers and causing them to get further entrenched in the rent-trap.
Luckily, those living in these less popular areas have other options if looking for a quick house sale, such as property buying companies who offer competitive rates in cash for any home, allowing the owner to move on with their lives without experiencing the arduous and stressful house selling process.
Are you struggling to find a buyer for your home? Why not avoid the stress and get a quick sale for cash? National Homebuyers will buy any house – so call 08000 443 911 or request a call back to find out how much you could get for your property.
