London averages to hit £400k in 5 years

27 October 2006
The London Housing Federation (LHF) has estimated that the average home in the capital city could hit £400,000 by 2011.

The report suggests that property prices could escalate by around 34 per cent in London over the next five years as the value of housing continues to outstrip wage increases, reducing affordability even further.

Analysts are predicting that with increasing expenses in that time, which could include tax supplements to fund London's hosting of the Olympics in 2012, first-time buyers will find it increasingly difficult to get a foot on the property ladder.

"London is facing a housing timebomb," said Berwyn Kinsey, the head of the LHF.

"Londoners are increasingly left with the choice of expensive rental accommodation, living in house shares or with parents or leaving the capital altogether."

The population in the city is expected to increase by around 800,000 in this time, the federation warned, and this increased demand could leave a shortage of housing which in turn will fuel an ever-increasing level of expense when it comes to buying property.

To read more about UK property, click here.


track© Adfero Ltd