London has secured the second position in the latest Global Cities Index compiled by Oxford Economics, ranking behind only New York. The index, which assesses 1,000 global destinations based on economic, human capital, quality of life, natural environment, and political stability indicators, placed London ahead of cities like Paris, San Jose, and Melbourne.
Despite its strong overall performance, London's 'quality of life' score was significantly affected by a housing affordability crisis, placing it 144th. The report found that Londoners spend a greater share of their income on housing than residents in "nearly every city in the world," hindering their financial wellbeing.
The average house price in London has risen by over 23 per cent, from approximately £449,000 in mid-2015 to £554,000 in June this year. Financial data group Moneyfacts noted that the average home in the capital now accounts for nearly 15 times the average earnings after taxes, a higher ratio than any other major region in England.
The report's authors attribute the housing affordability crisis primarily to a lack of supply, suggesting it will require "political willpower and time to overcome." Housing secretary Angel Rayner stated there was a "slim chance" of Labour meeting its target to build 1.5 million new homes by 2030, describing it as a "stretch target."