Salary of typical London homebuyer hits €147,511 as house prices surge
Home buyers in the UK capital typically borrow an average of £340,000, according to data compiled by the UK’s Office for National Statistics for the three months to the end of September.
The previous record for earnings was £98,000 in the second quarter.
The Bank of England moved to curb housing inflation in London in October 2014 by limiting loan-to-income multiples for borrowers.
Earlier this month, BoE governor Mark Carney said policymakers can take further measures if needed.
The average home in London now sells for £531,000 after gaining 7.2% in the 12 months through September, the data shows, as a rising population and a shortage of homes drives values higher.
The capital’s first-time buyers had an average annual salary of £82,000 in the third quarter, the data shows.
The ONS does not say how many of the buyers were couples with joint incomes.
The London house-price index is now 48% above highs achieved before the global financial crisis, the ONS said yesterday.
The annual rate of house-price inflation in London was 5.4% in August, the ONS said.
