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The Housing Crisis in London

View profile for Samantha Gilmore
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The National Housing Federation has issued a new report that has shown that unaffordable housing is one of London's biggest problems which has resulted in house prices being unreachable for many local people.

The Home Truths 2017/2018 report for London provides local data in respect of the housing market within London and has highlighted the following key points:-

  • House prices are more than double the national average at an average of £585,000 – and significantly higher in several boroughs.
  • Households require an annual income of almost £134,000 to afford a mortgage, compared with average salaries of £35,610 – making home ownership impossible for many Londoners.
  • The average private sector rent is £1,748 a month, rising to over £3,500 in one area.
  • This has led to a rise in the number of people in work claiming Housing Benefit – at 36%, this is higher than any other region in the country.
  • This is underpinned by a huge shortfall in housing. Between 2012 and 2016, there were 177,590 too few homes – the biggest discrepancy in the country. Almost half a million homes in London are affordable housing association homes, and housing associations are working with the Mayor of London to deliver even more of the affordable homes that the city so desperately needs.

Housing associations are joined by a sole purpose and that is to ensure everyone can live in a good quality home that they can afford.

Housing associations within London finalised nearly 9,000 new homes and started building a further 13,500 in 2016-2017. Almost 8,200 of these starts and completions are homes for social and affordable rent. Changes in Government policy will help bring even more. An additional £2bn investment included a specific commitment to allow new homes to be built for social rent which is the first time such funding has been available since 2010.

It is a step in the right direction by establishing certainty over future and rents and recognition for supported and sheltered housing however the Government now need to ensure the long term supply of affordable land  so that the right amount of homes in the right places can be built to meet the change in housing needs.

This is not legal advice; it is intended to provide information of general interest about current legal issues.

If you are considering buying or selling a property and would like a full breakdown of all known legal costs please contact our New Business Team on 01245 343940 or email newbusiness@gepp.co.uk