1. ITV Report

New report warns average London home will cost £650,000 by end of decade

The news will be unwelcome for young Londoners who, the report authors warn, will be excluded from home ownership if they stay in the city. Photo: Reuters

A new report has said that the cost of an average London home will soar by more than 40 per cent to almost £650,000 in just six years.

Rents are due to go up by a third, with house building expected to lag behind the rate by which the Capital's population will increase.

The largest price hikes will be seen in cheaper outer London areas such as Waltham Forest, Haringey and Lewisham

The National Housing Federation forecast says many young workers will be forced to leave London because of a shortage of new homes.

“We need to address the housing crisis now, before another generation is left locked out and reliant on taxpayers to keep the roof over their head from one month to the next.”

– Lizzie Clifford, The National Housing Federation

The report, Home Truths, says average house prices will rise from £452,400 this year to £647,500 by 2020, and £776,300 by 2023.

Prices in Waltham Forest will rise the most, by 84 per cent, from £272,200 to £501,300 over the decade, followed by Haringey, where they will increase 82 per cent, from £433,200 to £787,700.

The average rent across London will surge by 32 per cent, from £1,854 a month — already 82 per cent of average post-tax income — to £2,700.