The average home in London’s prime areas is on track for setting you back a cool million pounds, according to property website Rightmove, putting them out of reach of all but the richest buyers – many of them foreigners who don’t even live there.
With an average yearly London salary of around 34,000 pounds you would need five full-time jobs to satisfy even the more generous lenders who offer mortgages worth five times income.
And that is after scrabbling together a minimum 10 percent deposit demanded by many banks, which would be 93,700 pounds based on the latest average house price data from Rightmove. Then there’s stamp duty (property tax) as well as legal fees.
As recently as August, a majority of economists polled by Reuters said Britain would see another house price bubble over the next five years.
They also concluded that London prices would rise around 6 percent a year – now surely too modest for 2013 at least.