London is home to over a third of Britain's gross property value, with the capital's homes currently worth a total of £1.5 trillion, according to the latest research from specialist London estate agents Stirling Ackroyd.
This is already comparable to the value of every home in the rest of England, which stands at £2.24 trillion as of 2014.
Moreover, by 2017 London homes are expected to be worth a total of £2.1 trillion, closing the gap with the rest of England put together, and making up 40% of all residential property value in Britain.
By contrast, in 1987 London homes were worth a total of just £273 billion, or 27% of all property wealth.
But today, property in three East End boroughs is worth more than all the homes in Wales. Hackney, Tower Hamlets and Southwark together have homes worth £170 billion, 5% more than Wales' £162 billion in residential property.
The findings follow Stirling Ackroyd's Heritage Report, which details how the value of property in eastern boroughs of the capital has outpaced more traditional stores of wealth in West London.
Andrew Bridges, managing director of Stirling Ackroyd, said: London is a growing asset for the UK, in a multitude of ways. From a city in decline with a falling population just thirty years ago, our capital has rebuilt its place at the heart of the financial, cultural and technological worlds.
This is both a success story and a call to action. London is enormously valuable, but it is also a prime field of opportunity for developers. We expect a growing wave of new homes in the capital in coming years and under the right conditions, development could help to ease supply. This progress will add hugely to London's value and in turn its dominance in the British property market.
Comments
Do you want to know much house prices should actually cost
UNDER 80 GRAND......
Yep. Thats how much the national average house price should cost today.
The individual national average wage was always able to buy the averagely priced house, all throughout the 1950's, 1960's, 1970's, 1980's and 1990's.
For no more than 3.5x individual income.
[Thats the long term median. On a couple of occasions it touched 5x salary, but went back down again quickly enough. At other times, it was just 2.5x salary]
The average mortgate rate over that same period was 7%. [Yes, for a long time, it was as high as 12%, throughout the eighties for instance, but the long term average median, over that fifty year period, is 7%]
Average Downpayment was 10%
That was the definition of affordability for the last half of the twentieth century.
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1997 was the last year, that the individual average wage could buy the average house, for no more than 3.5x individual average salary.
[Which is why the national average age of a FTB, without parental help is now 40 +]
[From 1997 to 2007, house prices tripled whilst the median UK wage rose by just 6.5k]
[In 1997 the national average house price was 55k.
The national average wage was 16,666
55/16,666 = 3.3x......So In 1997 it was 3.3x salary.]
So If the priced out generations today were able to buy a house, relative to the same levels of affordability vs earnings that previous generations enjoyed, then the national UK Average House Price today, would cost no more than 3.5x the national averge individual wage of 26.5k
26.5 x 3.5 = 79.5k
The average house price today should cost no more than 79.5k.
UNDER 80 GRAND.....
Yet according to the ONS the national average house price today is 250 Grand.
Im sure that this has completely destroyed many millions of peoples lives.
Labour, Tory, they're equally to blame. All Bankster puppets
Tell us something we don't know.