Household incomes have finally topped the levels they were at just after the financial crash. The average household in Britain now earns £24,300 a year, above the last peak in 2009. The picture looks rosy, with rising employment and low inflation helping income growth rise. But is there more to it than meets the eye?
It certainly seems that way if you live in London. Although those in the capital have enjoyed a healthy rise of nearly three per cent in their household incomes since the downturn, when you factor in housing costs, most Londoners are actually still losing out, according to the figures put out today by the Resolution Foundation. Because London has the lowest level of homeownership in the country, many of those in the capital are missing out on benefiting from factors which would help their earnings go further, such as falling mortgage costs.
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