Comparisons of average earnings and cost of living data by Barclays Private Clients indicate that re...
Comparisons of average earnings and cost of living data by Barclays Private Clients indicate that real earnings in the North of England and Wales are higher than in the Southeast, and could stoke the regional housing market to higher prices.
Falling house prices in London and the Southeast is not surprising, BPC says, because relative to earnings, living costs are far higher in this area of the country.
That in turn means less real disposable income that can be spent on other things, which may in fact be causing people in the North to "feel" richer, despite having lower average salaries.
"In the north, the real value of disposable incomes give some headroom for continued house price growth," BPC says.
According to its calculations, 8 of the top 10 "richest" place in the UK are in the North, despite average earnings being a quarter or more below those in London boroughs such as Kensington and Chelsea.
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