For all those interested in home ownership and going solo in the effort, brace yourselves.  House prices in London have now gone stellar.  That is, house prices have now reached levels out of reach for many of those looking to settle in the capital city.  They might be better served to find a partner and try to afford it with a roommate.  London is now experiencing the highest salary to value ratio ever, and the issue could be one which continues for some time, according to Nationwide.

The average house price for a residence in London is now sitting at an eye-popping £351,783.  This is almost a 30% increase in a year’s time.  This is almost twice the growth rate seen in other parts of the country.  The value of a home purchased by first-timers in all other parts of the UK is almost £160,000.

Lucian Cook with Savills property commented on price increases taking place in London, saying: “Levels of recent price growth in London means that prospective home buyers have had to take on increased debt relative to their income to get on or move up the housing ladder.”

Cook added: "This is particularly affecting first-time buyers."

Cook continued commenting: “For many, this [price hike] has made the aspiration of home ownership much more difficult to realise.  Buyers have had to cast their net much wider geographically across the capital, bringing demand and price growth to some of the less expensive markets.”

House prices continue to be hot in all regions and little slowdown is in sight.  Remortgage activity is not keeping up with increases in house prices, but there are still many deals available for those looking to potentially save money on future mortgage payments.