Warning of exodus from London as workers are locked out of property: Average home in the capital hits £438k or 12 times earnings

25/09/2015
London could be about to witness an exodus of workers as more and more find they cannot afford to live in the capital and decide to work elsewhere in the UK.

According to property analysts Hometrack, buyers may be near a tipping point where they set their sights on another city outside the capital offering better value.
The average price of a house in London is now £437,700, a record of more than 12 times average earnings, having increased by 10 per cent over the past year. It also means that the gap between house prices in London and those in other major cities is at its widest for 20 years.
For example, someone could now buy around four homes in Glasgow, or three in Manchester, or two in Bristol, for the price of just one in London.
Hometrack pointed out that the exodus could also help other city regions attract new investment as investors and developers seek to expand in more affordable markets.
Richard Donnell, director of research at Hometrack, said: 'London's price/earnings ratio is at an all-time high, while there remains value in most other regional cities.
'The pricing differential to London could well assist city regions attract new investment as the cost of housing starts to influence decision making for both households and businesses.'
The findings come after the National Association of Estate Agents yesterday reported that the supply of homes for sale across the UK plunged to an 11-year low in August.

Mark Hayward, managing director of the NAEA, said: 'There simply aren't enough houses to match demand and we're reaching crisis point.'
Meanwhile there are no signs that the problem is getting any better with house building activity only marginally up on last year.
According to the National House Building Council, a total of just 106,887 new homes have been registered between the start of 2015 and the end of August, up from 95,524 over the same period last year.
And a breakdown of the figures shows registrations were slightly down in the month of August, by 6 per cent, compared with a year earlier, marking the first time since January that this year's monthly figures have fallen compared with the corresponding month in 2014.

NHBC chief executive Mike Quinton said: 'We are now seeing registration volumes fall in the public and affordable sector after a good start to the year.
'This may be due to housing associations holding back on developments in the light of welfare reforms and the cap on rental increases.'
In total, the NHBC registered 145,174 new homes across the whole of 2014, well below the 250,000 home industry experts say need to be built every year to prevent spiralling house prices and a shortage of affordable homes.
The closest the UK got to this target was in 2006-07 under Labour when 219,000 homes were built. In 2012-13, the UK hit a post-war low of 135,500 homes, much of which was due to the financial crisis.

Fonte:http://www.thisismoney.co.uk/money/markets/article-3247726/London-tipping-point-home-buyers-locked-capital-s-property-market-look-Bristol-Manchester-Glasgow.html?ITO=1490&ns_mchannel=rss&ns_campaign=1490

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