New research has found that many homes across the North West are ‘earning more’ than the average salary- and one East Lancashire area made the top five.
A fifth of properties in the North West (18%) have increased in value by more than the average salary in the region according to new data from Zoopla.
In some areas of the region, the figure increases to nearly half of all properties.
Zoopla’s data found that South Lakeland is the place where homes are most likely to have increased in value by more than average earnings.
The average salary in South Lakeland is £27,900, and 45% of homes in the district have gone up by more than this in the past 12 months.
Other parts of the region saw a high proportion of homes likely to be earning more than the average salary in the area.
South Lakeland was closely followed by Trafford, where the average salary is £33,700, but 40% of homes there increased in value by more than this in the past 12 months.
Rossendale (38%), Tameside (27%), Rochdale (27%), Salford (26%) and Bury (26%) are the other places in the North West where at least a quarter of homes have gone up by more than the average salary for that area in just one year.
The city of Manchester comes in eighth with 22%. The data suggests that homes outside of the city centres in the region have been in particularly strong demand during the course of the pandemic, with many perhaps seeking out a lifestyle change.
How does this compare to the national picture? Across the UK, more than 4.5 million properties, amounting to more than a fifth (21%) of all UK homes, have risen in value by more than the average annual UK salary in the past year.
Hastings in the South East takes the crown for the area of the UK where the highest proportion of homes (62%) have increased in value by more than the average salary in the area.
Gráinne Gilmore, Head of Research at Zoopla comments: “There has been strong demand from home buyers in the North West since the housing market reopened after the first lockdown in May last year.
“This demand has been underpinned by people searching for more space, making a lifestyle change or climbing onto the first rung of the property ladder.
“At the same time, the savings of up to £15,000 on offer as a result of the stamp duty holiday in the 12 months to July also encouraged people to make a move. This has put upward pressure on house prices, with values rising significantly.
“When this price rise is translated into pounds and pence, it means nearly a fifth of homes in the North West have risen in value by more than the equivalent of a year’s earnings in the region over the space of 12 months. Anyone can get an instant estimate on the value of their home at MyHome on Zoopla, where they can also link directly to a Zoopla estate agent for a valuation.”
Homeowners who want to find out how much their home could be worth and see if it’s earned more than them, can visit: https://www.zoopla.co.uk/home-values/