You are here: Home - Mortgages - Buy To Let - News -

London housing affordability hits new lows

Written by:
Prospective buyers in London face another blow, as data by Hometrack showed the house price to salary ratio has hit a record high.

Even following recent softness in the market, the average house price in London reached £496,000 in October, against average earnings of £34,200. This means the average house costs 14.5 times the average salary. Similar ratios were seen in Oxford and Cambridge (12.6 and 14.3 respectively).

The statistics show that affordability may be a greater problem than stamp duty, even after this month’s Budget changes.

Hometrack said the gap between earnings and house prices may lead London to underperform other areas round the country. The fastest growing cities were Manchester and Birmingham, which grew 7.9% and 7.4% respectively, overtaking Edinburgh, which had the fastest-rising prices last month. Data from Barclays Mortgages showed Ladywood in Birmingham saw the highest house price growth in the country, at 17%.

London prices are up 3% year-on-year, but this has mostly been driven by outer London, while inner London has remained flat.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
remortgagors cash
Five ways to (legitimately) avoid paying tax on your income and savings

The ‘Paradise Papers’ revealed the sophisticated nature of offshore accounts allowing investors to avoid paying tax on their money. But...