Prices per square foot are now, on average, 33% higher than in the previous peak in 2007. Greater London prices are 13% higher than in 2007.
A report by Stirling Ackroyd, found even areas such as London’s Peckham – traditionally seen as affordable – have now joined the half-a-million club, with average house prices of £503,000. Streatham, Mile End and the East End’s E1 district have also joined the club, as well as St Katherine’s Docks.
Commercial real estate is one of the fundamental building blocks of our economy. It employs almost a million people and contributes over £60 billion to the UK’s economy (almost 4% of the total). Our industry adds over 50 million square feet of new space every year, worth around £12 billion and contributing almost 1% to the UK’s GDP.
Nearly two-thirds of London homes ‘earn’ more than a nurse in a year (average salary £35,316), according to the National Housing Federation, while in over half of London boroughs house price increases were higher than a police officer’s salary (£45,653) and in nearly a third of boroughs they were higher than a London solicitor’s salary (£70,840). House prices in Kensington & Chelsea and Westminster shot up by £156,016 and £145,578 respectively, more than the Prime Minister David Cameron’s annual salary of £142,000.