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London House Prices Ten Times Average Income


09-05-2014

It is claimed house prices in most London boroughs are now at least 10 times the average salary.

council house

Research by the TUC found that in 1997 just over a quarter of boroughs had house prices more than five times the average local salary - but by last year every borough had exceeded that ratio.

Kensington and Chelsea was the most unaffordable area with a ratio of 32.4 in 2013 (compared to 11.6 in 1997).

The Bank of England has recently instructed banks to limit the amount of morgages they give that are more than 4.5 times the salaries of those applying. The TUC claims the figures means home ownership is now out of reach of most local people.

The union also found only one place in Britain still has affordable housing. The average house price in Copeland in the Lake District is less than three times the average annual salary.

TUC General Secretary Frances O'Grady said: "Over the last 16 years, the increase in house price rises in London has outstripped the increase in peoples' pay packets. There is now not a single borough in London in which housing is affordable for those on an average local salary.

"This has a massive impact on families and communities, and also on the transport system, congestion and our environment, as more and more people can no longer live near to where they work. It is not just a problem for Londoners who cannot afford a home, it is a problem that has an impact on all those who live and work in London."

The union is calling for more homes to be built in the capital to get house prices under control.

"With interest rates low, now is the perfect time for an ambitious programme of home-building," Mr O'Grady continued. "A programme of building public sector housing would increase local employment opportunities, decrease the housing benefit bill and increase revenues to the government from income tax and national insurance."

The TUC also says more needs to be done for those forced to rent by the high cost of buying, "so  that they don't get ripped-off by soaring rents and by those landlords who fail to meet their responsibilities."

Ratio of house prices to earnings by borough:


Barking and Dagenham

Ratio of house prices to earnings, 1997 - 2.99

Ratio of house prices to earnings, 2013 - 5.05

Tower Hamlets

Ratio of house prices to earnings, 1997 - 3.80

Ratio of house prices to earnings, 2013 - 6.68

Havering

Ratio of house prices to earnings, 1997 - 4.46

Ratio of house prices to earnings, 2013 - 7.40

Croydon

Ratio of house prices to earnings, 1997 - 3.74

Ratio of house prices to earnings, 2013 - 7.57

Hillingdon

Ratio of house prices to earnings, 1997 - 3.54

Ratio of house prices to earnings, 2013 - 7.57

Newham

Ratio of house prices to earnings, 1997 - 2.78

Ratio of house prices to earnings, 2013 - 7.66

Bexley

Ratio of house prices to earnings, 1997 - 3.88

Ratio of house prices to earnings, 2013 - 8.03

Lewisham

Ratio of house prices to earnings, 1997 - 3.27

Ratio of house prices to earnings, 2013 - 8.03

Greenwich

Ratio of house prices to earnings, 1997 - 3.33

Ratio of house prices to earnings, 2013 - 8.26

Sutton

Ratio of house prices to earnings, 1997 - 3.47

Ratio of house prices to earnings, 2013 - 8.56

Waltham Forest

Ratio of house prices to earnings, 1997 - 3.47

Ratio of house prices to earnings, 2013 - 8.73

Redbridge

Ratio of house prices to earnings, 1997 - 4.07

Ratio of house prices to earnings, 2013 - 8.84

Enfield

Ratio of house prices to earnings, 1997 - 4.26

Ratio of house prices to earnings, 2013 - 9.37

Hounslow

Ratio of house prices to earnings, 1997 - 3.80

Ratio of house prices to earnings, 2013 - 9.48

Southwark

Ratio of house prices to earnings, 1997 - 3.80

Ratio of house prices to earnings, 2013 - 9.67

Lambeth

Ratio of house prices to earnings, 1997 - 3.88

Ratio of house prices to earnings, 2013 - 9.80

Bromley

Ratio of house prices to earnings, 1997 - 5.72

Ratio of house prices to earnings, 2013 - 9.99

Haringey

Ratio of house prices to earnings, 1997 - 4.21

Ratio of house prices to earnings, 2013 - 10.54

Barnet

Ratio of house prices to earnings, 1997 - 5.39

Ratio of house prices to earnings, 2013 - 10.88

Ealing

Ratio of house prices to earnings, 1997 - 4.43

Ratio of house prices to earnings, 2013 - 11.12

Merton

Ratio of house prices to earnings, 1997 - 4.71

Ratio of house prices to earnings, 2013 - 11.29

Hackney

Ratio of house prices to earnings, 1997 - 3.34

Ratio of house prices to earnings, 2013 - 11.30

Brent

Ratio of house prices to earnings, 1997 - 4.48

Ratio of house prices to earnings, 2013 - 11.63

Kingston upon Thames

Ratio of house prices to earnings, 1997 - 4.83

Ratio of house prices to earnings, 2013 - 11.86

Harrow

Ratio of house prices to earnings, 1997 - 4.80

Ratio of house prices to earnings, 2013 - 11.95

City of London

Ratio of house prices to earnings, 1997 - 4.72

Ratio of house prices to earnings, 2013 - 12.12

Islington

Ratio of house prices to earnings, 1997 - 5.40

Ratio of house prices to earnings, 2013 - 12.27

Wandsworth

Ratio of house prices to earnings, 1997 - 5.42

Ratio of house prices to earnings, 2013 - 14.44

Richmond upon Thames

Ratio of house prices to earnings, 1997 - 6.89

Ratio of house prices to earnings, 2013 - 15.01

Camden

Ratio of house prices to earnings, 1997 - 6.65

Ratio of house prices to earnings, 2013 - 15.28

Hammersmith and Fulham

Ratio of house prices to earnings, 1997 - 5.63

Ratio of house prices to earnings, 2013 - 16.30

Westminster

Ratio of house prices to earnings, 1997 - 7.03

Ratio of house prices to earnings, 2013 - 20.36

Kensington and Chelsea

Ratio of house prices to earnings, 1997 - 11.61

Ratio of house prices to earnings, 2013 - 32.39

 

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