This is how expensive it has become to buy a house in London
In 2016, house prices in London were on average 12 times the yearly income of an average worker, up from four times in 1997.
Ratio of median house price to annual earnings
There are lots of interested buyers, but very few houses.
London is going through a home shortage and new ones aren’t being built fast enough. Meanwhile, rich foreigners are paying huge sums for real estate in the capital. Investors bought some £100 billion ($125 billion) through overseas companies between 2008 and 2015.
What’s worse, Londoners aren’t earning enough money to keep up with the rising housing costs.
While earnings in London grew around 75% over the last two decades, house prices grew by more than 400%.
Median annual earnings and house prices in London
Brexit has only made things worst.
Because the pound depreciated since the Brexit vote, it is now cheaper for foreigners to buy property in London.
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