HOUSE prices in London have risen to 10 times the average wage this year as the sum of £197,000 became the norm across Britain.
According to the newest London Housing Commission report, house prices are now nearly 45 per cent higher than before the financial crisis and an average deposit in the capital costs over £70,000.
Figures also showed that while salaries grew by 2 per cent in the last five years, rents exploded by 14 per cent.
“Make no mistake — the capital is in the midst of a housing crisis but it’s of a different order to any housing crisis London has experienced in the past,” said London Housing Commission chairman Bob Kerslake.
“Decent housing and the idea of home ownership is becoming more and more out of reach of ordinary Londoners.
“As the London Housing Commission heard in the many responses to our recent call for evidence, businesses are being detrimentally affected, as current and potential employees are priced out of taking work in the capital.
“Public services are struggling to recruit and low-income households are being forced out of the city by rising rents and frozen entitlements.
“In short, the social and economic fabric of the city is being damaged by our dysfunctional housing market.”
House prices have also risen substantially across the rest of Britain, though the gap between housing costs in the north and south of England has widened by £23,000 this year.
According to Nationwide building society, London once again “outpaced” the rest of Britain with an average property selling for £456,229.