Could your house be earning you more money than your job?

A recent national report conducted by Halifax has found that people living in nearly one-third of local authority districts in the UK are earning more from simply owning a house than they are from their job.

The report details that surging house prices across the country are rising at a faster rate than many people’s annual salary, particularly when viewed over the course of two years or more. This is the case in 31% of all areas surveyed.

Perhaps unsurprisingly, this trend is most prevalent in London and the surrounding areas. For example, at the upper end of the scale, the average homeowner in Haringey has seen the value of their house shoot up by approximately £91,000 over the course of two years. Roughly, this equals to houses rising by nearly £4,000 per month, which is more than the average homeowner’s monthly income.

First-time buyers

The problem for non-homeowners across the UK

Even though salaries for people in 69% of areas across the UK at least match the rise in house prices, the problems for first-time buyers remain daunting all the same.

Martin Ellis, housing economist at Halifax, said: “Buoyancy in the housing market over the past two to five years has resulted in homes increasing in value by more than total take-home earnings for the average homeowner in many areas, though mostly in southern England’’.

“While it’s no longer unusual for houses to ‘earn’ more than the people living in them, in some places, there are clearly local impacts. Homeowners in these areas can build up large levels of equity quickly but for potential buyers whose wages have failed to keep pace, the cost of buying a home has become more unaffordable during that time.”

Five years on, are we still feeling the impact of the financial crisis?

It’s hard to believe that we’re almost coming up to a decade since the ‘Great Recession’ that began in December 2007. And although our economy went on to avoid a double dip recession, in the five years that followed, is it fair to say the knock-on effect of the financial crisis is still being felt across the country?

A recent national study led by the Institute for Fiscal Studies suggests that is very much the case, and has even predicted that the average household income in the UK is unlikely to grow for the next two years.

Looking further ahead, the report also suggests that in five years’ time households will only be 4% better off than they are now – which, if true, will mean that UK families face the tightest average income squeeze in 60 years, since World War II.

Getting ahead with your finances

For the average UK household, the risk of financial struggles in the future is not something to put aside until that prospect becomes reality. Chances are, families may find they are up to £5,000 worse off per year than they might expect.

That means forward planning to ensure that any fall in real income doesn’t come as a surprise. Whether means putting a bit of extra cash away now, or preparing to cut down on spending in the next few years – it’s likely to pay dividends in the long run.

As Storm Doris hits the UK, is now a good time to think about home insurance?

With Storm Doris now making her way onto UK shores, the Met Office has issued weather warnings across the country, declaring that the ‘weather bomb’ is likely to cause significant damage to buildings and houses.

In fact, the storm may be far more damaging than first predicted, with experts saying it has since gone through a phase known as ‘explosive cyclogenesis’. There’s no doubt that reported winds of up to 80m/ph will cause havoc among residences in affected areas of the country.

And as your beloved roof panels try to withstand a very tough test, now seems like as good a time as any for those homeowners without home insurance to consider the range of options out there.

Finding a home insurance plan that works for you

For most of us, our home is the single most valuable asset in our possession, which makes a robust home insurance policy essential to protect a property against all manner of eventualities.

Recent national research led by Consumer Intelligence shows that the average cost of home insurance coverage has increased by an average of 1.8% in the past year. This means that a standard policy is likely to cost around £124, and even more for over-50s for whom the increase is as much as 3%.

However, it’s not enough to just go for the cheapest price you manage to find; it always pays to check what is actually covered in each package. From weather damage to theft, there are a wide range of factors to consider – so make sure you double-check the lot before signing on the dotted line!