London Home Values Surpass 14 Times Earnings for First TimeBy
Homes in London are less affordable than ever before as low mortgage rates allow buyers to borrow more.
It now costs the average Londoner 14.2 times their annual gross salary to purchase a home, the highest level on record and more than double the ratio for the U.K. as a whole, according to data compiled by Hometrack. The annual rate of house-price growth in the capital was 9.1 percent in October, almost the lowest in three years, the property researcher said.
Home prices in London have surged 86 percent since 2009 as the supply of new stock failed to meet demand from domestic homebuyers and overseas investors. The spiraling values led Chancellor of the Exchequer Philip Hammond to set aside more than 3 billion pounds ($3.74 billion) on Wednesday to help construct more than 90,000 affordable homes in the U.K. capital by 2021…
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