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

Breaking News

As RRA Changes Loom, Thoughts from the Industry

Overview of changes due via RRA as of Friday 1st May Abolish section 21 evictions and move to a simpler tenancy structure where all assured tenancies are periodic – providing more security for tenants. Ensure possession grounds are fair to both tenants and landlords – giving tenants more security, while ensuring landlords can reasonably recover…
Read More →
Letting Agent Talk

Three steps landlords should take to pet-proof properties under new laws

With new pet rental rules set to come into force on the 1st of May, landlords are being urged to act quickly to prepare their properties and policies. The changes come at a time when demand for pet-friendly homes is far outpacing supply, with up to 13 million dogs across the UK but fewer than…
Read More →
Breaking News

Market continues to build momentum

Foxtons Lettings Market Index – March 2026 Market continues to build momentum, recovering from winter slowdown as supply strengthens   Lettings market continues to build momentum as we move further into the spring period. While renter demand remains below last year’s levels, March performance shows continued recovery from the winter slowdown. Market entering critical period…
Read More →
to let sign 2025
Letting Agent Talk

41% of letting agents unaware of rent rule changes

The latest research by The Letting Partnership has found that a significant proportion of letting agents remain unaware of key changes to rent in advance rules under the Renters’ Rights Act, despite the reforms coming into force from 1st of May 2026 and almost 40% of agents still taking more than one month’s rent up front.…
Read More →
Home and Living

How homeowners can fight back against rising energy bills

New research from Yopa warns that millions of homeowners are set to be hit with a 14% jump in energy bills this summer, wiping out recent savings and piling fresh pressure on household finances. In response, Yopa has analysed which home improvements are most effective at reducing energy use, looking at both the typical savings delivered…
Read More →
Breaking News

Homes selling as fast as last year

First time buyers in outer London hit hardest as higher borrowing costs and  high stamp duty costs weigh on sales times   The average time to sell a home is just 1 day longer than last year at 33 days, despite higher mortgage rates and 2 months of conflict in the Middle East However, areas…
Read More →