We're all aware of how rapidly house prices are increasing at the moment, but did you know just how much the typical homeowner is earning from their property as a result? Well, online estate agent eMoov.co.uk has looked into it, and the results may surprise you…
The research found that, on average, homeowners across the UK made £27,264 last year, purely from the rising value of their property. This equates to £524 for every full week, and £16 for every working hour of the year, around the same as the average salary in the UK.
Perhaps unsurprisingly, homeowners in London were able to profit most from their property, with the capital's housing market already in a hugely inflated state. On average, Londoners were able to bolster their yearly income by £58,000 across the 32 boroughs, a whopping £35 an hour, but some communities were able to benefit even more.
The London Boroughs of Camden and Westminster saw the biggest rise in property values with an increase of over £125,000 during the year, equating to £75 for every working hour – an incredible £1.25 every working minute. Homeowners in Barking and Dagenham saw the smallest increase of the capital, but at £27,000, their earnings were still in line with the UK average.
Meanwhile, properties in London's commuter belt were able to earn their owners an average of £29,000 last year, and although the figures are somewhat smaller when outside of the London/South East region, homeowners were still able to make an average of £11,000 during 2015.
Founder and CEO of eMoov.co.uk, Russell Quirk, commented on the findings: "Homeownership is not only one of the biggest decisions in life, but also one of, if not the most, expensive asset us Brits will ever own. However, getting over the hump of homeownership and the costs that come with it can certainly pay dividends in the long run, as this research shows.
"London is always going to dominate in terms of property value increase, but even outside of the South East, UK homeowners across the board have enjoyed an increase in property value equivalent to a second salary."
House prices are still rising, so now could be a great time to make that next move up the property ladder – you may have earned a sizeable sum from your current property, and you could earn even more with the next one! However, to really make the most of it, you'll need the right mortgage to suit, so check out our best buys to get started.
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
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