Property Partner has analysed the latest data from the Department for Communities and Local Government , showing the ratio of average house prices to average earnings for London boroughs and English regions from 2000 to 2015 . When Ken Livingstone became London ’ s first directly-elected mayor in May 2000 , the ratio of house prices to earnings across the capital stood at 5.6 . By the time he left office in 2008 , this figure had jumped 47 % to 8.3 times average earnings . In 2000 , many of London ’ s less affluent boroughs were affordable by UK-wide standards . Houses in Barking & Dagenham cost on

average 3.4 times earnings , in inner city Newham they were 4.3 . But during Ken ’ s tenure as mayor , prices in these boroughs rocketed away from local earnings , by 113 % in Barking & Dagenham and 110 % in Newham . Since Boris Johnson was elected in 2008 , house prices have also marched upwards , albeit at a slower rate . Prices across London have risen to 11 times average annual pay , with all but 5 of the 33 London boroughs ( Barking and Dagenham , Bexley , Tower Hamlets , Croydon , Havering ) into double-digits . Under Boris , the tech and hipster haven of Hackney has become less affordable , faster than any other local area in

the UK , with prices rising to 14.7 times average earnings . On instruction from the Bank of England , most mortgage lenders restrict borrowing above 4.5 times salary . Unsurprisingly , these more ‘ affordable ’ outer boroughs are now seeing the strongest house price growth , presenting the best opportunities for first-time buyers and investors . Outside London , the south east and east of England , the picture is very different . Housing affordability levels are still below their pre-global financial crisis peak in every other region . In England as a whole , the affordability ratio has stretched by just 0.02 % in the nine years from 2007 to 2016 .

Dan Gandesha , CEO of Property Partner , comments : “ This research shines a harsh spotlight on the desperate issue of affordability in the capital , proving London ’ s current and former mayors - Ken and Boris - both failed on housing . “ We need an innovative approach to help resolve the supply crisis . Neither of the two frontrunners who ran for mayor were even able to define ‘ affordable ’. What is crystal clear is that most Londoners are being priced out of the housing market as properties now stand at eleven times average earnings . “ The solution to the housing crisis in the capital must be radical . There ’ s no time to waste . Potentially

unpopular solutions , like building on the green belt , should be seriously considered . House building needs to double to meet demand . It ’ s time to put options like property crowd funding on the table as part of the answer . “ But perhaps the British obsession with mass home ownership needs to change too . With government support for build-to-rent initiatives , long-term renting could eventually fill the gap , with larger institutional landlords taking over the sector , providing affordable rents and professionally-managed properties rather than multiple , small private ones .”

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