UK

London's Hideously Unaffordable Property Market In A Single Graph

23/01/2014 14:34 GMT | Updated 23/01/2014 14:59 GMT

London's property prices are continuing to soar higher and higher as the government fails to get enough new homes built to keep up with demand.

In an analysis of house prices compared to incomes by Fitch Ratings agency, London's property market sticks out at the very top in its unaffordability.

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New York, by contrast, seems to be verge on the downright cheap in its affordability.

According to Fitch, "both London and the UK are above their own averages for the last 16 years".

"Fitch believes the disconnect from incomes in London will further widen over the next two years due to reinvigorated consumer confidence, mortgage availability, high-LTV lending, and continuing demand from foreign cash buyers."

With Mark Carney only recently turning off the Bank of England's support for the mortgage market, it looks like demand for London property is set to continue skyrocketing.