London house prices are nearly 12 times average earnings, according to new research by Lloyds Bank.
The research revealed that Average earnings in London have failed to keep pace with the rise in house prices over the past 20 years. In 1996, the average price to earnings ratio in the capital was 3.9. This had soared to 11.6 in 2016, making property three times less affordable than it was 20 years ago.
The least affordable borough both 20 years ago and today is Camden, with a house price to average earnings ratio of 6.2 in 1996 and 20.0 in 2016. The most ‘affordable’ borough in London last year was Bexley (7.4) followed by Havering (7.7).
If you find a time machine go to Hackney in 1996
The North East London Borough of Hackney has seen the steepest growth in house prices in the capital over the past 20 years. The average house price in Hackney has increased £530,700 (702%), from £75,569 in 1996 to £606,269 in 2016.