Thousands of Colchester homes earn more than their owners in a year

Analysis carried out by Zoopla found one in five properties across the country is increasing in price at a higher rate in a single year than the average worker is paid.

An estimated 4.6 million privately-owned homes have jumped in value by more than £30,500 across the UK in the past 12 months.

In the East of England alone, more than half a million homes have increased in value at a higher rate than the region’s average salary of £31,500.

That is nearly one in four homes.

Colchester has seen the highest number of homes earn more than their owners’ salaries.

A total of 20,000 homes have seen their value increase above the average salary in the borough.

This works out as 29 per cent of homes in the area.

The town’s average salary is about £31,900 whilst the average house price is £320,000, according to Zoopla.

Read more:

• Extra police patrols planned in Castle Park after vandalism
• Young man sustains spinal injury after reckless jump at sea
• First look at flats at Colchester's old Co-op after £5.5m revamp

A total of 14,000 homes in Tendring have seen their value increase above the average salary.

This is approximately 22 per cent of properties in the district.

The district’s average salary is £28,900 whilst the average house price is £270,000.

Zoopla says the demand from potential buyers has been strong since the housing market reopened after the first national lockdown.

Buyers are said to be looking for more space and a different lifestyle as they no longer had to commute to work on a daily basis.

The stamp duty holiday is also thought to be fuelling the momentum in the housing market.

Gráinne Gilmore, head of research at Zoopla, said: “Hundreds of thousands of households have made the move into their new home over the last year.

“But activity has been so high, it has eroded the stock of homes for sale, which has put upward pressure on house prices, with values rising by up to nine per cent in some parts of the country.”