Tuesday, 24 September 2013

Hard Working Houses?

As mentioned by the ONS and picked up by the FT Alphaville team, London house prices are up 9.7 per cent over the 12 months to July.

With the average London house costing £438,000, the capital gain was worth £38,729. The average London household post-tax wage, however was of £38,688 in 2011 (apparently the last year for which the ONS has statistics).

Now, there are some issues with cross comparison and the FT freely admits that it hasn't factored capital gains, paying foxtons, getting the money while having somewhere to live, potential transaction costs but as the article concludes;

"London houses don’t sleep or take holidays, and earned £4.42 every single hour of the year to July."
 
Perhaps it is time to add hard-working houses to the political lexicon.

1 comments:

Mark Wadsworth said...

According to ONS:

"In April 2011 median gross weekly earnings for full-time employees were highest in London at £651 [per week]"

So that's £34,000 GROSS, not net after tax.