Rise in UK house prices surpasses average annual salary

UK houses prices have risen above the average annual salary, newly released data reveals.

UK house prices have increased by £32,000 in the last year, which is more than the average pay for the nation’s workers.

While the average prices of UK property prices rose more in the year to May than the average annual salary for UK workers, experts are predicting that the market will ‘rebalance’ soon with interest rate and cost of living rises expected to start to slow the pace of growth.

Data from the Office for National Statistics (ONS) reveals that average UK house prices reached £283,000 in May after increasing more than the mean average salary for all UK workers, which is £31,477.

Property values rose by 12.8% annually in May, up from an 11.9% increase in April.

Houses prices are therefore rising quicker than the decades-high levels of broad-based inflation, which is measured by the Consumer Prices Index.

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