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The Average Cost Of A Home In London Is On Course To Breach The £1M Level By 2030

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http://www.theguardian.com/business/2015/may/14/london-house-prices-could-double-in-the-next-15-years-to-1m-pounds

The average cost of a home in London is on course to breach the £1m level by 2030 as house building struggles to keep pace with a rapidly rising population, a leading consultancy is predicting.

Oxford Economics warned that affordability problems in the capital would intensify even further if the expected increase in demand for housing coincided with a widening of the gap between rich and poor.

In a report for a consortium of private sector clients, the consultancy said the forecasts for population and jobs growth made by Boris Johnson were too cautious.

The London mayor predicted last year that by 2036, London’s population will have increased from 8.5 million today to 10 million. Oxford Economics said it was likely to be 11 million.

On jobs, the consultancy said the mayor’s forecasts had not taken into account the 625,000 increase in employment between 2012 and 2014. It also expects employment growth over the next two decades to be 314,000 higher.

Richard Holt, head of global cities research at Oxford Economics, said: “We expect that at some point in the next year the Mayor’s advisers will revise upwards their forecasts for London’s population and employment. Getting these numbers right is vital if London is to have the schools, the transport infrastructure and the housing that it needs, to support its growth.”

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http://www.theguardian.com/business/2015/may/14/london-house-prices-could-double-in-the-next-15-years-to-1m-pounds

The average cost of a home in London is on course to breach the £1m level by 2030 as house building struggles to keep pace with a rapidly rising population, a leading consultancy is predicting.

Oxford Economics warned that affordability problems in the capital would intensify even further if the expected increase in demand for housing coincided with a widening of the gap between rich and poor.

In a report for a consortium of private sector clients, the consultancy said the forecasts for population and jobs growth made by Boris Johnson were too cautious.

The London mayor predicted last year that by 2036, London’s population will have increased from 8.5 million today to 10 million. Oxford Economics said it was likely to be 11 million.

On jobs, the consultancy said the mayor’s forecasts had not taken into account the 625,000 increase in employment between 2012 and 2014. It also expects employment growth over the next two decades to be 314,000 higher.

Richard Holt, head of global cities research at Oxford Economics, said: “We expect that at some point in the next year the Mayor’s advisers will revise upwards their forecasts for London’s population and employment. Getting these numbers right is vital if London is to have the schools, the transport infrastructure and the housing that it needs, to support its growth.”

UK household debt is already some 150% of disposable income and growing ~7% p.a. At that rate it's destined to clear 210% of income by 2020. AFAIK only the Netherlands has ever been (briefly) higher.

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Oxford economics are notorious rent an economist hpi preachers I seem to recall...

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