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London house prices ten times earnings


02-25-2017

 

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Photo: PA

Property prices in London have reached ten times average earnings, making it the second least affordable city in the UK, topped only by Oxford.

Home affordability in cities is at its worst levels nationally since 2008, with properties typically costing nearly seven times earnings, a report has found.

The study, which looked at 61 cities across the UK, identified Oxford as the UK's least affordable city, with homes there costing nearly 11 times average local earnings.

London came second with Winchester, Cambridge and Chichester also in the top five. The capital has has seen the fastest house price growth over the last five years, with a 57% uplift taking average prices to 467,001.

Stirling in Scotland was identified as the UK's most affordable city, with the average house price there put at 3.7 times local earnings.

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Credit: PA

St Albans in Hertfordshire, a popular city with London commuters, recorded the biggest price rise of any UK city over the past decade, with a 65% gain over the last 10 years. The average house price in St Albans is now 515,899.

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Credit: PA

Lloyds said the average house price-to-earnings ratio in London disguises considerable variations across the borough, with central London boroughs being significantly less affordable than Greater London as a whole.

"Affordability levels have worsened for four consecutive years as average city house prices continue to rise more steeply than average wage growth.

"House prices in the south have generally seen stronger growth than in the North. St Albans has recorded the biggest gains over the past decade, whilst London has been the top performer during the recovery."

Andy Mason, Lloyds Bank

Lloyds used house prices from its banking group's database as well as Office for National Statistics average earnings figures for the research.

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