Gap between earnings and London house prices hits record high

A home in London now costs more than 14 times average earnings. Credit: PA

London house prices have risen 86% since 2009 according to new figures from Hometrack.

The study shows that a home in London now costs more than 14 times average earnings - the highest level on record. The average house price in London is £482,800 - more than 14 times the average annual wage at £33,720.

Despite the house prices in London having their slowest annual growth in the past three years, at around nine per cent, these figures are still the highest level on record.

In last week's Autumn Statement, the Government revealed new measures to boost housebuilding, including a new £2.3 billion Housing Infrastructure Fund to deliver up to 100,000 new homes in areas of high demand.