The average cost of a home in London is more than 14 times average earnings – the highest level on record, according to figures from property consultancy Hometrack. A lack of homes for sale combined with demand fuelled by low mortgage rates has pushed up average prices in London by 86% since 2009, according to Hometrack, to an average of £482,000. The increase is far in excess of wage growth and means prices are 14.2 times the average London wage packet of £33,720 a year – the highest multiple since 2002. Prices in Glasgow are typically just 3.7 times local earnings, making it one of three cities where the ratio is below its long-run average, Hometrack said. At £112,700 the average price in Liverpool is 4.4 times earnings, while in Newcastle it is 4.8 times earnings at £122,600.

Source: The Guardian November 25, 2016 00:01 UTC