April house prices have indicated that the UK is indeed on the path to economic recovery. Indeed, houses have done so well that they are reported to have earned two thirds more than their owners during April.
A comparison between house price increases and earnings for the average employee during April showed that the typical UK property, rose in value by just over ?3,280 ? significantly higher than the average employee earning of about ?1,960 per month, according to the Office for National Statistics (ONS). In comparison, homes have earned 67 per cent more than human employees during April.
When the calculation is made for values over 12 months, the amounts come to ?39,400 for homes compared to ?25,500 per year for employees.
Also affecting the figure is the fact that most housing gains are exempt from capital gains tax. Comparatively, employee earnings are subject to income tax, which will further increase the margin when comparing such earnings with the financial value of home ownership.
Although this is cause for celebration among home owners and economists alike, the reality of the situation is that home price increases are only meaningful in reality when a house is sold for an actual price that compares with its value. Economists and property experts also warn that the current home value increase is typical of an economic ?boom? period, which is unlikely to be sustainable in the long term.
The chief economist at Nationwide, Martin Gahbauer, for example told Telegraph.co.uk: ?? the year-on-year rate in this month?s figures received an additional boost from the fact that April 2009 was one of the weaker months last year.?
