Support 100 years of independent journalism.

  1. Chart of the Day
3 August 2022

How UK house prices are soaring above wage growth

Since January 2019 house prices have risen by 25.6 per cent – twice as fast as wages.

By Saywah Mahmood

The UK housing market has retained momentum in recent years despite house prices far outpacing wage growth.

House prices are rising almost twice as fast as wages. Figures from Nationwide show that they have increased by 25.6 per cent since January 2019. In the same time period, average wages in the UK increased by only half as much (13.5 per cent). 

Annual house price growth in the UK has stayed in double digits for the past nine months. Further figures from Nationwide show that annual UK house price growth accelerated from 10.7 per cent in June 2022 to 11 per cent in July 2022.


This has been caused in part by the UK’s failure to build enough houses for decades.

In July, the average house price in the UK was £271,209. This comes despite inflation hitting a 40-year high of 9.4 per cent in June and the ongoing living standards crisis.

Sign up for The New Statesman’s newsletters Tick the boxes of the newsletters you would like to receive. Quick and essential guide to domestic and global politics from the New Statesman's politics team. A weekly newsletter helping you fit together the pieces of the global economic slowdown. The New Statesman’s global affairs newsletter, every Monday and Friday. The best of the New Statesman, delivered to your inbox every weekday morning. The New Statesman’s weekly environment email on the politics, business and culture of the climate and nature crises - in your inbox every Thursday. Our weekly culture newsletter – from books and art to pop culture and memes – sent every Friday. A weekly round-up of some of the best articles featured in the most recent issue of the New Statesman, sent each Saturday. A newsletter showcasing the finest writing from the ideas section and the NS archive, covering political ideas, philosophy, criticism and intellectual history - sent every Wednesday. Sign up to receive information regarding NS events, subscription offers & product updates.

Commenting on the annual house price figures, Robert Gardner, Nationwide’s chief economist, said: “The housing market has retained a surprising degree of momentum given the mounting pressures on household budgets from high inflation, which has already driven consumer confidence to all-time lows. While there are tentative signs of a slowdown in activity, with a dip in the number of mortgage approvals for house purchases in June, this has yet to feed through to price growth.”

[See also: When will UK interest rate rises start to reduce inflation?]

Content from our partners
How to create a responsible form of “buy now, pay later”
“Unions are helping improve conditions for drivers like me”
Transport is the core of levelling up

Topics in this article: , ,