Are house prices continually rising?
House prices have increased at 24 times the rate of the average national salary.
In fact, since the 1980’s house prices have increased a whopping 1010%!
Personal finance comparison site Tracker has been mapping the costs of household items against average income and inflation since the 1980’s. The findings may shock you.
Tracker has discovered that inflation has risen 255% since 1980. On the other hand, the average salary has increased just 43%. This statistic shows that inflation has risen at 6 times the pace of the average salary.
As a result, people living in Britain are struggling to afford household items due to their wages not being able to compete with the ever rising costs of daily life.
In fact, the only item that has increased more than inflation in 2019 was the cost of stamps which have risen 2.6 times ahead of the inflation rate.
House prices are increasing at 4 times the amount of the rate of inflation. This may start to explain why more people are now seeking to rent in the UK. Residents of the UK simply do not have the income to be able to get on the property ladder as they are not able to find the (often 15%) deposit required when purchasing a property.
In 2019’s data it shows that house prices increased by 0.99% which sat below the inflation rate which was 1.75 times higher. This occurrence is rare as the data collected by Tracker shows that house prices have increased at a higher rate than inflation in 26 out of the 40 years analysed.