Key information
Publication type: General
Publication date:
Contents
The overview
- London’s economy grew strongly in 2014
- Monetary divide between the US Fed and European Central Bank
- Renminbi becomes an IMF reserve currency
Economic indicators
- Firms in London increased their output of goods and services in November 2015.
- The PMI for new orders recorded 57.6 in November 2015 compared to 57.9 in October 2015.
- House prices, as measured by the Office for National Statistics, were higher in Q3 2015 than in Q3 2014 for London and the UK.
LET supplement: An economic analysis of London’s housing market
- In 2014 house prices were almost 10 times median earnings in London, compared to about four times in 1997.
- Data from the Council for Mortgage Lenders (CML) shows that the median cost of mortgages secured on properties in London increased from being 2 to 2.5 times greater than buyers’ median income in the 1980s to early 1990s, to more than 3.5 times the value of borrowers’ income by 2013.
- Average mortgage payments in recent times have been around ‘average’ levels for the past 30 years or so (at around 20 per cent of income).This is likely to be due, principally, to the very low interest rates experienced in recent years.
Back to table of contents