House price to salary ratio for London has hit a record high according to Hometrack
The latest Hometrack UK Cities House Price Index – October2017 reveals UK city house price inflation increases to 6.1% with robust growth in regional cities.
The house price to salary ratio for London has hit a record high at 14.5x earnings, the average house price in London reached £496,000 in October, and average earnings were £34,200. Three other cities have a ratio over 10x.
Hometrack state: There is further upside for house prices in large regional cities of up to 25% if affordability levels rise over the long run average. In London the p/e ratio is expected to drift lower.
They mention that ‘Despite the recent increase in interest rates, they continue to believe that house prices in regional cities have further upside given the current position of housing affordability and the similarity of the current housing cycle to the last cycle.
Read the latest Hometrack UK Cities House Price Index – October2017 released 28th November 2017 in full click here.
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