LONDON — London’s housing market has been characterised by decades of runaway growth, and research by estate agents Savills puts the sheer scale of recent price growth into perspective.
The data, provided to Business Insider, found that the average daily increase in London house prices between December 2011 and December 2016 was £105.
While price growth was the fastest in “prime” central areas like Kensington & Chelsea and Westminster — at £218 and £213 respectively — less affluent areas in outer London also saw rocketing price growth.
Over the same period, the research found that salaries grew by just 54p a day — or £197 a year.
Take a look at the full chart below:
The average London house now costs an eye-watering £486,000, compared to the national average of £205,800 — over 14 times the average Londoner’s salary.
The market does, however, appear to be stalling this year, in line with many economists’ predictions: home-sellers across the capital are slashing asking prices, and the city registered its lowest rate of price growth for 42 months in January.
Savills used ONS data for the house figures and based the wage figure on ONS and Oxford Economics data.