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

March 1, 2019

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 Agent Talk

Buy-to-Let Explained: How It Works and Is It Worth It?

Buy-to-let is one of the most popular property investment strategies in the UK, attracting investors who want to generate regular rental income while benefiting from long-term property value growth. Whether you are a first-time landlord or someone considering adding property to an existing investment portfolio, understanding how buy-to-let works is essential. If you are exploring opportunities with Whitegates…
Read More →
Letting Agent Talk

The Hidden Cost of Deposit Disputes for Letting Agents

Nobody gets into lettings because they love arguing over oven grease. Yet for a growing number of letting agents across London and beyond, deposit disputes at the end of a tenancy have become one of the most quietly destructive parts of the job — eating into time, draining morale, and slowly eroding the trust that…
Read More →
Breaking News

Britain’s strongest housing markets revealed

The latest research from Benham and Reeves reveals the best-performing housing markets across Great Britain when it comes to the average rate of house price growth seen over the course of 2025, with the northern regions and Scotland outperforming most of the rest of the country with annual price growth of up to 11%. Last…
Read More →
Rightmove logo
Breaking News

Over £900 million economic opportunity lost to property fall throughs

Analysis from the UK’s largest property platform Rightmove reveals there is an economic opportunity of over £900 million in England if the number of property transactions falling through can be reduced The calculations show that nearly £392m in potential estate agency revenue and £515m in potential government stamp duty receipts were lost last year to…
Read More →
Breaking News

Landlords chasing rental arrears of £470m

The latest research from Propoly – the platform that automates compliance, reduces risk and protects landlords – has revealed that landlords in England deal with more than £470 million worth of rent arrears in a year, with the largest number of tenants in arrears found in London and the North East. Propoly has analysed the…
Read More →
Estate Agent Talk

Building Buyer Trust Through Architectural Visualization in Real Estate Marketing

In real estate marketing, trust is not a soft value. It is a transaction driver. Buyers commit to years of financial exposure based on how credible a project feels long before it is built. That credibility is no longer shaped by brochures alone. Today, developers often work with a rendering agency to construct a visual…
Read More →