The UK offers the third least affordable housing market in the entire English speaking world, says one survey, the 2008 Demographia International Housing Affordability Survey.
The survey takes a close look at just how affordable each area of the country is, based on their housing market. Some 25 of the 28 UK markets here are considered to be seriously unaffordable, according to the survey. Properties include Falkirk (Scotland), Belfast, London and London suburbs, as well as Exeter & Devon.
In order to calculate the affordability of any housing market, the survey uses the median multiple method. In this method, the median house price of the market is divided by the median annual household income. This method is nothing new and in fact is one of that is recommended by the World Bank and UN when considering housing affordability.
Additionally, according to website SmartNewHomes.com, as reported by Introducer Today, the average price of a new home in the city of London in December rose to £411,981. This number is £53,801 higher than the same number in October. The company claims that house prices here rose by 21.6%. The average price of a home in London was reportedly down 2.1% in December, but when the monthly index is used, the actual costs show something much different.
According to David Bexon, who is the Managing Director there, "Our index shows that the price of a new home in London has increased dramatically over the last three month period proving that this area remains competitive and is developing a strong resilience. Demand is still strong among the capital's buyers, many of who are in full employment and have considerably equity in their existing properties."
