MP salary growth set to outstrip UK house prices for a second year running

Yesterday, MPs were dubbed as ‘out of touch’ as their latest in a steady stream of pay rises pushed the average salary to just under £80,000.

With this consider and with the UK housing market continuing to see price growth stutter as a result of Brexit uncertainty, the latest research by Benham and Reeves highlights that MP salary growth could outstrip UK house price growth for the second consecutive year.

Benham looked at the average MP salary since 2010 and compared this annual growth to UK house price data from the ONS.

The data shows that in 2018 house prices increased by just 1.3% on the previous year, while MPs salaries jumped 1.8% from £76,000 in 2017 to £77,379 in 2018.

This is the first time they’ve outstripped house price growth since 2015 when MPs enjoyed a mammoth jump of over 10% annually, while house prices increased at just 4.25%.

Since then Brexit uncertainty has seen annual house price growth fall each year but remain ahead of the increase in MPs salaries – until 2018.

With the end far from sight with regard to Brexit, the UK property market is likely to see property price growth remain subdued over 2019 and there is every chance annual growth will fail to reach the 2.7% increase in salaries already enjoyed by MPs so far this year.

Director of Benham and Reeves, Marc von Grundherr, commented:

It’s really quite disappointing to see that those who have been elected by the people are in line for a healthy pay bump, while the people themselves, hardworking homeowners who have struggled to make it onto the ladder, are seeing the value of their property stagnate as a result of the chaos that continues to unfold in Westminster.

There is no doubt that many MPs do an outstanding job of representing their constituencies although many have also added fuel to the flames of market uncertainty in contrast to the views of those they represent. Regardless, when the increasing rate of pay they are receiving starts to outstrip house price growth, even in slower market conditions, then something isn’t quite right. 

With this latest salary increase, it looks as if this trend that has materialised over the last year is likely to repeat itself in 2019 unless the UK market enjoys a price growth spurt that defies wider expectations.

Year
MP Salaries
Annual Increase
Av. House Price
Annual Increase
2010
£65,738
£162,971
2011
£65,738
0.00%
£164,785
1.11%
2012
£65,738
0.00%
£162,924
-1.13%
2013
£66,396
1.00%
£174,444
7.07%
2014
£67,060
1.00%
£189,002
8.35%
2015
£74,000
10.35%
£197,044
4.25%
2016
£74,962
1.30%
£205,937
4.51%
2017
£76,011
1.40%
£211,433
2.67%
2018
£77,379
1.80%
£214,178
1.30%
2019
£79,468
2.70%

 

Properganda PR

National and local media coverage for property businesses. Journo quotes delivered in minutes.

You May Also Enjoy

Estate Agents should not all look the same
Estate Agent Talk

How to Become an Estate Agent with No Experience

Breaking into the property industry can seem intimidating – especially if you’ve never worked in it before. But the good news? You don’t need years of experience or fancy qualifications to start a career as an estate agent in the UK. In fact, many successful estate agents started with no background in property at all.…
Read More
buying at auction uk
Estate Agent Talk

9 Advantages of Selling Your House by Auction

Selling your house by auction might seem like a daunting prospect, but it comes with numerous advantages that can make it a highly attractive option. While the traditional method of selling through an estate agent has its place, auctions are increasingly becoming a popular choice for homeowners looking for a swift and reliable sale. Here…
Read More
Breaking News

Majority of Tenants Unsure How Changes Will Affect Them, Says LRG

With major changes to the private rental sector on the horizon, 62% of tenants say they don’t know whether the government’s Renters’ Rights Bill will address their concerns – highlighting a growing need for clearer communication around what the reforms will mean in practice. LRG’s latest Lettings Report shows that while landlords are widely aware…
Read More
Home and Living

Perfume Storage Tips: How to Keep Your Fragrances Fresh

Perfumes are sensitive compositions that can be significantly affected by how they are stored. Proper storage ensures that your favorite fragrances stay fresh and maintain their intended scent profile. In this article, we’ll explore practical, fun, and effective tips to help you preserve your perfumes in perfect condition. Understanding the Sensitivity of Perfumes Perfumes are…
Read More
Breaking News

Renters’ Rights Bill Delay Causing Uncertainty for Tenants and Landlords

Ministers need to tell landlords and tenants when measures in the Renters’ Rights Bill will take effect the National Residential Landlords Association (NRLA) is today warning. The Government pledged last year to abolish Section 21 ‘no explanation’ repossessions and to make other changes to the rental market this summer. With the Bill not scheduled to…
Read More
Breaking News

Breaking Property News 02/04/25

Daily bite-sized proptech and property news in partnership with Proptech-X.   Made Snappy 360 appoints new CEO and Sales Director to accelerate growth in the property technology space Made Snappy 360, the fast-growing proptech company known for its virtual tours and floor plan technology, has appointed industry veteran Mark Beresford-Ward as its new Chief Executive…
Read More