Saturday 5 November 2016 3:05 pm

It's now easier to buy a home in New York than it is in London

London's housing market was once the poor relation of New York's, but rapid house price growth in the UK capital has made it more unaffordable than its American rival.

In July this year, the average house price in London was £484,176 as compared to £411,018 in New York, making the Big Apple a more accessible market.

Read more: This is how the third runway at Heathrow will hit London house prices

However, there has been more impressive house price growth in the UK, according to research by easyProperty.

Since December 2012, US house prices have grown by 20 per cent, but UK house prices have shot up by 28 per cent.

Rob Ellice, easyProperty chief executive, said: "Based solely on current values and capital appreciation it could be argued that five years ago, London was a better investment as the average price was $408,178 compared to New York's $469,000 and has enjoyed stronger appreciation.

Read more: London's house prices won't rebound until 2020, according to JLL

"If you buy today, New York seems to be more affordable based on its comparable current average value, being about seven per cent cheaper than London.

"This makes me question what government or market intervention has helped New York City curb its growth rate and keep homeownership more within reach during Obama's administration. The answer could be that close to 70 per cent of New Yorkers rent compared to 25 per cent of Londoners."

In the US, the transaction costs are higher, however. On average, a Londoner will pay £22,343 on transaction costs compared to £28,182 in New York.

Many experts save said that London may well be a more attractive option for overseas buyers due to the devaluation of the pound after the Brexit vote.

But, it's not helping prop up prices in prime central London areas. In some parts of the capital, such as Chelsea, house prices have fallen by 10 per cent.

Meanwhile, near Heathrow, it is thought that house prices will be hit hard by the construction and completion of the third runway.