House price growth 'higher than average wage'
House prices have increased by more than the average UK wage, according to new research.The Post Office's Cost of Buying & Moving study has revealed the typical property saw £29,339 added to its value over the past 12 months. In the same period, the average worker earned £27,271. As a result of this growth, the typical cost of a home has risen to £272,952. John Willcock, head of mortgages at Post Office, said: "Property prices have soared over the last year, following a long period of recovery - and are set to increase further over the next five years."Unsurprisingly, house price growth was strongest in London, with properties in the capital adding more than £80,000 to their value on average. This is close to twice the average wage earned by people living in the city. According to the latest research from LSL Property Services, house price growth in England and Wales has more than doubled over the course of the past year. The organisation recorded an increase of 11.3 per cent, compared to 5.4 per cent 12 months earlier.This is the highest annual growth reported since January 2005, although it is still some way behind the 22.5 per cent rise that was experienced in December 2002.David Newnes, director of LSL subsidiaries Reeds Rains and Your Move estate agents, stated: "These figures are spurred on by London and the south-east, where the housing recovery has been fast-tracked. When these regions are removed from the calculations, a calmer 5.7 per cent annual rise in house prices materialises."LSL found the average price of a home was £280,733 in November, which represents an increase of £2,277 (0.8 per cent) compared to the month before. This is the 17th month in succession that a new peak average price for England and Wales has been recorded.
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