Average London prices to hit £400k by 2011

Posted: 26 Oct 2006 10:53:51 GMT

Average house prices in London will rise to almost £400,000 within the next five years, a London Housing Federation report has warned

Average house prices in London will rise to almost £400,000 within the next five years, a London Housing Federation report has warned.

The federation said that house prices are due to increase 34 per cent over the period to £392,000 by 2011.

"London is facing a housing timebomb," said Berwyn Kinsey, head of the London Housing Federation - which represents London's 400 housing associations.

"House prices, already sky-high, are expected to rocket by another £100,000 over the next five years, making it even harder for people to get on the housing ladder."

The average London property already costs almost £300,000, or 8.8 times the £33,373 average annual salary in the capital.

This is less than half the £79,379 a year that is required to secure a mortgage on the average home and the situation is set to get worse as wages rise slower than prices.

© Houseladder Ltd