The Evening Standard runs another story to strike fear into the hearts of those who do not own their houses. The cost of buying a house in London will be 10 times the average salary in the city by 2026 if housing supply does not increase.

This is all the more intimidating a figure when one considers that the average salary in the capital is now 37,323 per year. This average is inflated by 300,000 people working in financial services in London whose average salary is 90,000 per year, according to an article by Simon Parker of Demos and David Goodhart of Prospect magazine earlier this year. They also report that there are 108,000 people in London earning more than 100,000 and 38,000 earning more than 200,000. The gap between rich and poor, and the rich and the lower middle classes is growing quickly.

The average house price in the UK is 196,893; in London the figure now tops 250,000.

Posted by: Kieran Long on 07/06/07

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