Cost of Housing in London


London is one of the cities in the world that is leading the way when it comes to increased house prices. This is not all as residents are also being pounded by all sorts of increase in costs. The annual London Factor from Halifax revealed that there are high property costs for people who want to buy or rent. The research went ahead to provide an outline of the current financial situation as well as the social pros and cons of living in London. The average house price in the UK is about £173,687, in London however it is more than 79% standing at around £ 136, 000.

In the capital, the price of property has been increasing steadily when compared with the average in UK from 2007. Average costs are at 4% which is below the peak especially when compared to the national percentage that is 13%. Almost 49.5% of homes in London are occupied by their owners. This is the lowest occupation rate in the whole of UK which is 64.3%. The same applies to outright ownership which is lowest in London at 21.1% about a fifth compared to the national percentage which stands at 30.8%.

Consulting with estate agents in Islington also shows that London is one of the most expensive cities to run and own a home in the UK. The average cost of doing this is about £ 12, 094 in the capital while the average figure for UK is around £ 9590 close to a difference of about £2500. Buying is also considered cheaper than renting a house in London. In the capital homeowners are typically required to pay £98 (8%) a month less than the person who is renting. Residents of London however in full time employment have the advantage of earning around 32% higher than other workers in the UK. The disposal income of Londoners is about £285 higher that that of the national average.

It is also important to note that the cost of living in London is way higher than the other parts of the country. People living here also have the lowest saving levels which are relative to the gross earnings annually at 22% while the average for UK is close to 30% at 29%.

Halifax economist Martin Ellis said that London as a leading global city offers major economic, cultural and social benefits not just to the people who reside here but also to the other parts of the country. This implies that individuals should not really shy off about looking for houses for sale Islington because of the prices. It is also important to know that in recent years the capital as recorded the highest employment growth rate when compared to the rest of UK. The average earnings in the city are also about 32% higher than UK average. On the other hand it is more expensive to live here when compared to the other regions. This does not really come as a surprise that people here tend to save less than others in UK despite that they actually earn more money as they have to end up spending more.