The Resolution Foundation, a leading Think Tank, has just reported that average house prices across the UK have risen by 36% since April 2011 whilst earnings have "only" risen by 7% during the same period, an increase in house prices that's 5.1 times the increase in earnings
They cite that the gap is even bigger in London & the Southeast, where prices have risen by 57% and 39% respectively
Looking further afield they claim the following
"Even in Scotland and the north-east of England, where house price growth has been most modest over the last five years, it has been roughly double the pace of average earnings growth."
I've had a look at the figures for Sunderland myself and I'm afraid this just doesn't stack up!
The average sold price of a property in Sunderland in April 2011 was £131,896 and is now £127,183 a reduction of 3.6%
During this time average full time weekly earnings in Sunderland have risen from £452 per week in April 2011 to £481, an increase of 6.6% (which is in line with the Resolution Foundation figures)
So...based on these figures, properties in Sunderland are now more affordable than in 2011
This sort of London-centric reporting is dangerous because it informs housing policies, when the reality out in the 'provinces' is a million miles away from the spin
Of course there's no such thing as a UK average housing market or even a Sunderland average housing market (interestingly despite average Sunderland prices falling by 3.6%, average sold prices for semi detached properties in Sunderland increased by 6% and the average sold price for flats increased by 14% during the same period) so if you are thinking of investing in Sunderland seek out expert local advice
Call me on 0191 567 8577 or email firstname.lastname@example.org for a free, no obligation chat about any aspect of the Sunderland property market