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

Letting Agent Talk

7 Ways Self Storage Supports Business Growth in 2025

As businesses face increasing challenges in managing costs, scaling operations, and adapting to changing markets, self storage has emerged as an indispensable tool for success. Whether you’re a small startup or an established multinational company, self storage offers a practical, affordable, and secure way to handle the demands of modern business. As businesses grow, they…
Read More
Estate Agent Talk

How much would Bridget Jones’ iconic London apartment cost today?

How much would Bridget Jones’ iconic London apartment cost today? A new study has revealed that the average price to purchaseBridget Jones’ iconic London apartment in the Borough Market area is now £415,090. The study calculated that this is a price increase of 182% since the first film premiered in 2001. The research obtained data…
Read More
Love or Hate Rightmove
Breaking News

Rightmove House Price Index: Record number of sellers in promising start to 2025, but uncertainties ahead

The average price of property coming to market rises by 1.7% (+£5,992) this month to £366,189, the largest jump in prices at the start of the year since 2020: New seller asking prices are still nearly £9,000 below May 2024’s record, reflecting buyer affordability constraints A record number of early-bird new sellers have come to…
Read More
Breaking News

Zoopla identifies housing markets with best prospects for house price growth in 2025

New analysis from Zoopla, one of the UK’s leading property websites, reveals that housing markets in Scotland and Northern England have the best prospects for house price growth in 2025, as Southern England continues to adjust to the impact of higher mortgage rates. Housing markets in Scotland and Northern England have the best prospects for…
Read More
Estate Agent Talk

Shared Ownership vs. Traditional Mortgages: What’s the Difference?

Buying a property in Guildford is a significant decision, and choosing the right method of ownership is crucial. Two popular options available to buyers are shared ownership and traditional mortgages. Understanding their differences can help you decide which suits your financial situation and property aspirations. What Is Shared Ownership? Shared ownership is a government-backed scheme…
Read More
Rightmove logo
Breaking News

Rightmove’s weekly mortgage tracker – 16/01/25

Average mortgage rates drop despite mixed economic news   Commenting on the drop in average rates this week, Rightmove’s mortgage expert Matt Smith says: “Despite all of the economic news we’ve had this week, average rates have fallen. It shows that despite the challenges affecting the mortgage market at the moment, lenders are keen to…
Read More