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

Breaking News

Breaking Property News – 28/02/24

Daily bite-sized proptech and property news in partnership with Proptech-X.   Birchgrove and Hybr launch intergenerational living scheme A unique partnership will see students, key workers and retirees live together at new north London retirement development. Birchgrove, the UK’s leading provider of rented retirement homes, and Hybr, the UK’s leading student letting platform, today announce an industry-first…
Read More
Estate Agent Talk

Benefits Of Choosing Roger Bates Properties

Roger Bates Properties stands out as a prominent real estate agency that offers a myriad of benefits to individuals seeking to buy, sell, or invest in real estate. With a stellar reputation and a commitment to excellence, choosing Roger Bates Properties can prove to be a decision that yields numerous advantages. 1. Experience and Expertise…
Read More
Love or Hate Rightmove
Breaking News

Rightmove’s weekly mortgage tracker – 28/02/24

The average 5-year fixed mortgage rate is now 4.80%, up from 4.59% a year ago The average 2-year fixed mortgage rate is now 5.15%, up from 4.92% a year ago The average 85% LTV 5-year fixed mortgage rate is now 4.73%, up from 4.64% a year ago The average 60% LTV 5-year fixed mortgage rate is now 4.30%, up from 4.25% a year ago The average monthly mortgage payment on a…
Read More
Love or Hate Rightmove
Breaking News

Rightmove calls for stamp duty reform with only 4% of London homes exempt

Ahead of the Spring Budget on March 6th, the UK’s biggest property website Rightmove suggests three policy reforms that could help people moving home: A reform of stamp duty to consider regional property price variations: Only 4% of homes in London are stamp duty exempt for all buyers, compared to 71% in the North East Less than…
Read More
Breaking News

Breaking Property News – 27/02/24

Daily bite-sized proptech and property news in partnership with Proptech-X.   Alto reveals ‘next generation’ of Lettings Progression Alto, software for estate agents and part of Houseful, has revealed further information about the improvements being rolled out in 2024 to drive a step change in business efficiency for letting agents. Leading the way is a…
Read More
Home and Living

The Versatility of Parquet Flooring in Contemporary Homes

What comes into your mind when you hear about parquet flooring? Most probably Victorian era, historic estates, grand ballrooms, and grand mansions but what if I tell you that the parquet flooring has redefined itself with warmth, texture, and classic elegance? Parquet flooring in contemporary homes is a delight to the eyes because when you…
Read More