House price to salary ratio for London has hit a record high according to Hometrack

November 28, 2017

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.

 

Allen Walkey

Highly experienced businessman with a successful career in property sales and investment both in the UK and abroad. Now a freelance writer and blogger for the property and Investment Industry, keeping readers up-to-date with changes and events in a rapidly changing world.

You May Also Enjoy

painting with polycell crack free ceilings
Home and Living

The Benefits of Repainting Your Interiors

Repainting your home’s interior is a simple yet powerful way to refresh and revitalize your living space. Whether you’re looking to update outdated colors, boost your home’s value, or create a more inviting atmosphere, a fresh coat of paint can make a significant difference. In this article, we will explore the numerous benefits of repainting…
Read More →
Breaking News

UK house sales up 19% year on year for December

The latest UK monthly property transaction report from the HMRC.   The provisional seasonally adjusted estimate of the number of UK residential transactions in December 2024 is 96,330, 19% higher than December 2023 and 3% higher than November 2024 The provisional non-seasonally adjusted estimate of the number of UK residential transactions in December 2024 is 98,120, 15%…
Read More →
Estate Agent Talk

UK House Price Index from Nationwide -Thoughts from the Industry

Commenting on the latest UK House Price Index from Nationwide showing property prices have risen by 4.1%, here are some thoughts from the Industry. Daniel Austin, CEO and co-founder at ASK Partners: “We are continuing to see a rise in house prices, which is hopefully the sign of an upward trend developing going into 2025.…
Read More →
Breaking News

House price growth softens at the start of 2025

Annual rate of house price growth slowed to 4.1% in January, compared with 4.7% in December House prices up 0.1% month on month Little change in overall rate of home ownership in recent years despite affordability pressures Commenting on the figures, Robert Gardner, Nationwide’s Chief Economist, said: “The price of a typical UK home rose…
Read More →
Home and Living

Mastering Sleep: The Bensons for Beds Difference

Sleep is one of the most fundamental aspects of our health and well-being. A good night’s rest rejuvenates the body, sharpens the mind, and enhances overall productivity. Yet, millions of people struggle with poor sleep due to discomfort, stress, and unsuitable bedding. Enter Bensons for Beds, a leading name in the sleep industry, dedicated to…
Read More →
Breaking News

Leaseholders To Benefit Significantly from the removal of Two-Year Rule

Residential property transactions could become easier following the removal of the two-year rule for leasehold property extensions which comes into force today (31 January 2025) but lawyers have warned the necessity of proving ownership could be challenging due to Land Registry backlogs. This significant change means leaseholders no longer need to own their leasehold property…
Read More →