Average price of a London home today is £490,000
Are you a London home owner? Then this news story is going to make you feel very smug.
The average house price in the capital is set to break the £1m barrier before 2030.
A report by Oxford Economics, a financial forecasting consultancy, has found that if house prices keep up with the growth in wages, then the average London home could be worth £1m in the next 15 years.
According to the Office for National Statistics, the average price of a London home is £490,000, compared with the national average of £268,000.
Richard Holt, of Oxford Economics, said: “The simple arithmetic comes out with quite a striking number. We have a forecast for growth in pay and we are assuming simply that house prices rise at the same rate.
“In the past they have tended to rise faster. It could be earlier but equally there could be a crash, there are all sorts of possibilities. The concern would be if people on lower incomes were seeing a slower increase in their pay than those on higher incomes.”