Dive Brief:
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Home prices in London surged almost 20% between August 2013 and August 2014, pushing property values there to an average of 500,000 pounds—about $795,730 U.S.—for the first time.
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Across England, the price hike was five times greater than in the rest of England.
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Economists attribute the citywide boom in home prices to four factors: affordable interest rates; low unemployment; tight housing inventory; and consumer optimism.
Dive Insight:
Skyrocketing prices have shut potential home buyers who earn less than 100,000 pounds—$158,946 U.S.—out of the market. That amount is three times greater than the average Londoner’s salary.