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

Breaking News

Propertymark backs move to commonhold

Propertymark has welcomed proposals from the Ministry of Housing, Communities and Local Government to phase out the sale of new leasehold flats in England and Wales, while warning that the transition to commonhold must be carefully managed to avoid market disruption and consumer confusion. Responding to the UK Government’s consultation on “Moving to commonhold: banning…
Read More →
Letting Agent Talk

Phasing out leasehold flats is the right thing to do

Propertymark has welcomed UK Government proposals to ban the sale of new leasehold flats and replace them with a commonhold system designed to give homeowners greater control over their properties. Responding to a consultation launched by the Ministry of Housing, Communities and Local Government, Propertymark said the reforms could help tackle many of the long-standing…
Read More →
Letting Agent Talk

Deposit Disputes Are Rising – Are Baths to Blame?

Interior Designers Say Acrylic Baths Are the Hidden Culprit in Family Rentals Deposit disputes over bathroom damage are rising, and acrylic bath surfaces are the overlooked culprit. Acrylic baths are often marketed as lasting 10 to 15 years or more, yet designers say many start to look tired in busy family homes within just a…
Read More →
Breaking News

Inheritance tax haul grows as more families are dragged into the tax net

Inheritance tax receipts got off to a slightly slower start in the first month of the 2026/27 tax year, but the figures still underline how rapidly the tax burden on estates continues to grow. HM Revenue & Customs (HMRC) collected £0.7 billion in inheritance tax in April, £65 million less than during the same month…
Read More →
Breaking News

The 10 biggest homebuyer turn-offs

From overgrown gardens to nightmare neighbours, homeowners across Britain could be knocking tens of thousands of pounds off the value of their property before a buyer even makes an offer.   New insight from House Buyer Bureau reveals the most common homebuyer turn-offs that could be thwarting your chances of making a sale, and the…
Read More →
Home and Living

5 trends driving London’s landscaped gardens

London gardens can add more than £205,000 in value as Chelsea tops table for prime buyers seeking outdoor space Ahead of this year’s Chelsea Flower Show, research by Enness Global has revealed that a garden can add more than £205,000 to the value of a London home, whilst Chelsea fittingly boasts the highest degree of…
Read More →