London’s average house price increase is about 10% per year. In some areas it’s much more but let’s take this very conservative number.
So if we look at a typical home that a young professional in London could aspire to: 1 or 2 bed new build flat in some up-and-coming Zone 2 area, still rough on the edges, eg. Lewisham. Expect a price tag of around £450k.
10% on a house that costs £450k means that the value of that property will increase by the end of the same year by £45k.
£45k is more than an average young professional gets paid in London. For full-time work, 8 hours a day, 5 days a week and with many years of experience.
It’s quite depressing to say the least. Or should it be yet another motivation to work harder and smarter? Perhaps.
Is your home too earning more than you?