The average London home is going to be £400,000 in five years time, so new research suggests.
Given a 34% increase, by 2011 average London house prices will be £392,000, so the London Housing Federation states.
London is about to experience a housing timebomb. House prices are already sky high and are going to increase by another £100,000 over the next few years, so would be first time buyers are going to find it even harder to get on to property ladder .
Your average London home costs nearly £300,000 already, 9 times the average London salary of £33,373. So should you want to buy an average London home, a first time buyer needs a salary of £79,379.
This situation is going to get worse. Salaries only rise 4.1 - 4.4% p.a., with house prices about to increase faster at 7% p.a. for the following five years.
This means that the average London salary is to increase to £41,000 by 2011, with average house prices rising 9.5 times that amount.
Londoners will be faced with expensive rental accommodation, sharing houses with friends or colleagues or parents or getting out of the capital altogether.
Presently, the most expensive place in the London is Camden, north London. The average property here costs 10.7 times the average income.
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Average London House Price £400,000
Thu, 26 Oct 2006
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