Average London house "to cost 500,000 by 2020"

Average London house 'to cost 500,000 by 2020': Welcomed by home owners but 'grim news' for first-time buyers Economic growth is expected to be stronger in the capitalThere is evidence of a growing 'North-South' divide in the housing market outside London By James Salmon PUBLISHED: 01:34 GMT, 11 February 2013 | UPDATED: 01:36 GMT, 11 February 2013 The price of a typical London home will hit half a million pounds by the end of the decade, according to leading economists. The average house in the capital will cost 383,000 this year and then rise more than 30 per cent by 2020, the Centre for Economics and Business Research think-tank said. Experts last night said the figures would be welcomed by home owners in the capital but said it was ‘grim news’ for those already struggling to get a foot on the property ladder.