Devon Tops Capital Appreciation Survey
House prices in the UK have continued to rise significantly this year, meaning that in some areas, properties are earning more than the annual income of homeowners. Landlord Today reports on a new survey by GetAgent, which highlights the top ten capital appreciation locations in Britain.
South Hams on the South Devon coast tops the table, with an annual average house price growth of an impressive £78,831. This is an area where the average annual salary is £28,711, meaning that some fortunate residents are gaining an extra £50,120 a year in capital appreciation. The average price of a home in the area is £424,072.
Other hotspots include Islington in London, North Devon, and the Cotswolds. The popularity of rural areas can be explained by the ‘race for space’, as people are given more freedom about where they work since the pandemic. Larger properties with room for a home office, or potential to extend, are the most in demand.
GetAgent founder Colby Short said: “This really demonstrates how hot the market has been running pretty much since the start of the pandemic. The flipside to this positive market trend is the ever growing issue of affordability and this has only grown larger due both upward house price growth as well as the fact that earnings simply haven’t kept pace.”
He added: “Both factors have tipped the scales of affordability further out of kilter for the average homebuyer, but for those that have secured a foot on the ladder, the fact their home is earning as much, if not more on a yearly basis will be warmly welcomed.”
The average home now costs 11% more than this time last year, The Guardian reports. However, experts are predicting that the market will begin to cool off over the coming year, as the squeeze on living standards starts to bite.
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