The disparity between average earnings and house prices
is reaching record levels in certain parts of the country, with house prices in
London reaching 14.2 times the average salary. House prices in the capital have
risen by 86% since 2009 and the house price to earnings ratio in London is now
the largest on record and more than double the UK ratio of 6.5. Cambridge and
Oxford also have double digit price to earnings ratios which, in turn, are well
ahead of the average over the last 12 years while strong house price growth in
Bristol, which has the fastest growing house prices in the index, has pushed
the price to earnings ratio to 9.2 times earnings over the last two years. Read
more on the Hometrack website.
