House prices outperform salaries in Wokingham

HOUSES in Wokingham earn more annually than people.

According to data released by GetAgent, house prices in Wokingham outperform annual income.

In 2021 the average house price in Wokingham rose by £63,926, whereas the average annual salary was £42,037.

This means that houses in the area have out-earned the average person by £21,889.

Colby Short, founder and CEO of GetAgent, said: “There are no less than 131 areas of Britain where house prices have outperformed the average income over the last 12 months, which really demonstrates how hot the market has been running pretty much since the start of the pandemic.”

Wokingham ranked 15th out of the 131 areas in Britain with South Hams in Devon topping the list.

The average house price increased from £345,242 to £424,072 in the past year, a rise of £78,831.

Meanwhile, the average salary in South Hams sits at £28,711, meaning local houses have out-earned the average person by £50,120.

Mr Short believes this trend shows the growing issue of affordability for many people across the country.

He said: “The flipside to this positive market trend is the issue of affordability and this has only grown larger due both upward house price growth as well as the fact that earnings simply haven’t kept pace.

“Both factors have tipped the scales of affordability further out of kilter for the average homebuyer, but for those that have secured a foot on the ladder, the fact their home is earning as much, if not more on a yearly basis will be warmly welcomed.”

In nearby Reading, wages outperformed annual house price growth by £16,825.

The average house price in Reading increased by £20,499 last year, with the average annual salary sitting at £37,324.

This is similar to the rest of Great Britain where the annual gross salary was £7,076 higher than the average increase in house prices.