London House Prices Ten Times Average Income
09-05-2014
It is claimed house prices in most London boroughs are now at least 10 times the average salary.
Research by the TUC found that in 1997 just over a quarter of boroughs had house prices more than five times the average local salary - but by last year every borough had exceeded that ratio.
Kensington and Chelsea was the most unaffordable area with a ratio of 32.4 in 2013 (compared to 11.6 in 1997).
The Bank of England has recently instructed banks to limit the amount of morgages they give that are more than 4.5 times the salaries of those applying. The TUC claims the figures means home ownership is now out of reach of most local people.
The union also found only one place in Britain still has affordable housing. The average house price in Copeland in the Lake District is less than three times the average annual salary.
TUC General Secretary Frances O'Grady said: "Over the last 16 years, the increase in house price rises in London has outstripped the increase in peoples' pay packets. There is now not a single borough in London in which housing is affordable for those on an average local salary.
"This has a massive impact on families and communities, and also on the transport system, congestion and our environment, as more and more people can no longer live near to where they work. It is not just a problem for Londoners who cannot afford a home, it is a problem that has an impact on all those who live and work in London."
The union is calling for more homes to be built in the capital to get house prices under control.
"With interest rates low, now is the perfect time for an ambitious programme of home-building," Mr O'Grady continued. "A programme of building public sector housing would increase local employment opportunities, decrease the housing benefit bill and increase revenues to the government from income tax and national insurance."
The TUC also says more needs to be done for those forced to rent by the high cost of buying, "so that they don't get ripped-off by soaring rents and by those landlords who fail to meet their responsibilities."
Ratio of house prices to earnings by borough:
Barking and Dagenham
Ratio of house prices to earnings, 1997 - 2.99
Ratio of house prices to earnings, 2013 - 5.05
Tower Hamlets
Ratio of house prices to earnings, 1997 - 3.80
Ratio of house prices to earnings, 2013 - 6.68
Havering
Ratio of house prices to earnings, 1997 - 4.46
Ratio of house prices to earnings, 2013 - 7.40
Croydon
Ratio of house prices to earnings, 1997 - 3.74
Ratio of house prices to earnings, 2013 - 7.57
Hillingdon
Ratio of house prices to earnings, 1997 - 3.54
Ratio of house prices to earnings, 2013 - 7.57
Newham
Ratio of house prices to earnings, 1997 - 2.78
Ratio of house prices to earnings, 2013 - 7.66
Bexley
Ratio of house prices to earnings, 1997 - 3.88
Ratio of house prices to earnings, 2013 - 8.03
Lewisham
Ratio of house prices to earnings, 1997 - 3.27
Ratio of house prices to earnings, 2013 - 8.03
Greenwich
Ratio of house prices to earnings, 1997 - 3.33
Ratio of house prices to earnings, 2013 - 8.26
Sutton
Ratio of house prices to earnings, 1997 - 3.47
Ratio of house prices to earnings, 2013 - 8.56
Waltham Forest
Ratio of house prices to earnings, 1997 - 3.47
Ratio of house prices to earnings, 2013 - 8.73
Redbridge
Ratio of house prices to earnings, 1997 - 4.07
Ratio of house prices to earnings, 2013 - 8.84
Enfield
Ratio of house prices to earnings, 1997 - 4.26
Ratio of house prices to earnings, 2013 - 9.37
Hounslow
Ratio of house prices to earnings, 1997 - 3.80
Ratio of house prices to earnings, 2013 - 9.48
Southwark
Ratio of house prices to earnings, 1997 - 3.80
Ratio of house prices to earnings, 2013 - 9.67
Lambeth
Ratio of house prices to earnings, 1997 - 3.88
Ratio of house prices to earnings, 2013 - 9.80
Bromley
Ratio of house prices to earnings, 1997 - 5.72
Ratio of house prices to earnings, 2013 - 9.99
Haringey
Ratio of house prices to earnings, 1997 - 4.21
Ratio of house prices to earnings, 2013 - 10.54
Barnet
Ratio of house prices to earnings, 1997 - 5.39
Ratio of house prices to earnings, 2013 - 10.88
Ealing
Ratio of house prices to earnings, 1997 - 4.43
Ratio of house prices to earnings, 2013 - 11.12
Merton
Ratio of house prices to earnings, 1997 - 4.71
Ratio of house prices to earnings, 2013 - 11.29
Hackney
Ratio of house prices to earnings, 1997 - 3.34
Ratio of house prices to earnings, 2013 - 11.30
Brent
Ratio of house prices to earnings, 1997 - 4.48
Ratio of house prices to earnings, 2013 - 11.63
Kingston upon Thames
Ratio of house prices to earnings, 1997 - 4.83
Ratio of house prices to earnings, 2013 - 11.86
Harrow
Ratio of house prices to earnings, 1997 - 4.80
Ratio of house prices to earnings, 2013 - 11.95
City of London
Ratio of house prices to earnings, 1997 - 4.72
Ratio of house prices to earnings, 2013 - 12.12
Islington
Ratio of house prices to earnings, 1997 - 5.40
Ratio of house prices to earnings, 2013 - 12.27
Wandsworth
Ratio of house prices to earnings, 1997 - 5.42
Ratio of house prices to earnings, 2013 - 14.44
Richmond upon Thames
Ratio of house prices to earnings, 1997 - 6.89
Ratio of house prices to earnings, 2013 - 15.01
Camden
Ratio of house prices to earnings, 1997 - 6.65
Ratio of house prices to earnings, 2013 - 15.28
Hammersmith and Fulham
Ratio of house prices to earnings, 1997 - 5.63
Ratio of house prices to earnings, 2013 - 16.30
Westminster
Ratio of house prices to earnings, 1997 - 7.03
Ratio of house prices to earnings, 2013 - 20.36
Kensington and Chelsea
Ratio of house prices to earnings, 1997 - 11.61
Ratio of house prices to earnings, 2013 - 32.39