New research shows that despite recession blues and political and economic uncertainty, property values have comfortably outpaced growth in London salaries, which since 2011 have risen by just 54p a day — pushing the gulf between average incomes and average property prices to its widest ever point.
The research found that in December 2011 the average home in London cost £292,284. Today that has soared to £483,803.
Meanwhile, average London salaries have inched upwards from £34,336 to £34,531.
This means the majority of London home owners have almost certainly earned less than their properties since 2011.
“The £105 per day increase in house prices over the past five years means the average home has earned £38,325 a year, against the average pre-tax salary of £34,531,” said Frances Clacy.
And, she pointed out, once tax has been taken into account, the gulf between average income and average property price only widens.