A home in London now costs more than 14 times average earnings - the highest level on record - according to a new report published.

A strong demand for housing in London combined with a lack of supply has increased house prices by 86 per cent since 2009, property analysts Hometrack said.

According to Hometrack's figures, the average house price in London is £482,800 - more than 14 times the average annual wage at £33,720.

That is more than double the house price-to-earnings ratio across the UK generally, where a buyer can expect to spend around 6.5 times their annual wage to purchase a home.

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Despite the house prices in London having their slowest annual growth in the past three years, at around nine per cent, these figures are still the highest level on record.

Richard Donnell, insight director at Hometrack, said there had been a slowdown in house price growth in London as affordability had become more stretched.

Mr Donnell said: “In cities where affordability levels are stretched, fewer households are able to participate in the market and this reduces levels of turnover and leads to lower levels of house price growth.

“This process is under way in London where the annual rate of growth is close to its lowest level for three years and where the top end of the market is already registering falling prices.”

In Wednesday's Autumn Statement, the Government unveiled a package of measures to boost housebuilding, including a new £2.3 billion Housing Infrastructure Fund to deliver up to 100,000 new homes in areas of high demand.

London will receive £3.15 billion as its share of national affordable housing funding to deliver more than 90,000 homes.