House prices in London are now 10 times the average salary

78,000 children are living in temporary accomodation

 

A recent but little-noticed interim report by the London Housing Commission, published by the IPPR, offers a fresh reminder of the dire state of housing in London at the start of 2016.

What we call the housing crisis – rising rents, not enough houses, a property price boom – is having a profound affect on the lives of people trying to survive in one of the world’s premier cities.

House prices are now 44 per cent higher than they were before the financial crisis of 2008, with the average deposit for a home at over £70,000.

Meanwhile, rents continue to dwarf incomes, with weekly pay increasing by a mere 2 per cent, while rents have grown by 16 per cent in the past five years.

Home-ownership has also fallen over the last decade by more than 10 per cent, from 39 per cent to 27 per cent.

The report highlights the need for 500,000 new homes over the next decade, after just 194,000 were built in the last one. Public investment in new homes fell by a staggering 60 per cent per household between 2011 and 2015.

As of right now, 50,000 households are currently forced to live in temporary accommodation, including 78,000 children.

Lord Bob Kerslake, chair of the commission, said:

“the social and economic fabric of the city is being damaged by our dysfunctional housing market.”

Meanwhile, as Left Foot Forward has reported, homelessness in Britain is up by a third since 2009 and demand for emergency food remains shamefully high.

The London Housing Commission’s final report will be published in March ahead of the London Mayoral Election.

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17 Responses to “House prices in London are now 10 times the average salary”

  1. Selohesra

    Problem is not enough houses – or put another way too many people. Net inward migration of >300K pa can’t help

  2. Jacko

    This is the fault of the last Labour government and their program of mass immigration, when immigration ran at 500% of the levels since the 1950s. Between the last two censuses, the population of London rose by 12%.

  3. Cole

    So how’s the Conservative government doing getting down those immigration numbers? Going well, I see.

  4. David McKendrick

    So if houses in London are so expensive why don’t all the people who can’t afford to buy houses just move out of London?

  5. Woo11

    nothing top do with Thatcher selling off the Council houses then? or the investment buys that stand empty, or indeed the housing bubble in the national economy!

  6. Woo11

    if you are simply going to post senseless questions, please, dont bother!

  7. David McKendrick

    Have you got any better options?

  8. Brad JJ

    That is a taboo subject. Careful you do not upset the Millennials.

  9. Brad JJ

    Selling council houses did not reduce the housing stock. Dynamiting HUNDREDS OF THOUSANDS of flats in industrial-build Labour tower blocks and medium rise did.

    Dundee Population 1970 — `186,000
    Dundee Population 2015 — 142,000
    Houses build 1970-2015 — 20,000 circa
    June 2015 — 7,222 people on housing waiting list

    Why? Population goes DOWN 40,000, house building takes place but shortage remains?
    Because thousands of tower block flats – built by Labour were demolished.

  10. Brad JJ

    This will NEVER be resolved. Never. London is already taking on the make-up of a highly polarised third world city.

    There is vast, ignored, criminal overcrowding – ignored because it is too politically sensitive to discuss as ethnicity and faith are central. A 3 bed terrace with 20 occupants – more and more common.

    And building enough houses so that prices fell would not be politically acceptable to the beneficiaries of the boom and they are many.

    A great issue for Londoners is who should get social housing – low paid workers or vital service providers to the masses.

  11. Sid

    Londonistan !!!

  12. Chester Draws

    Some of that report is rot though. Take the lead headline:

    22% of all private-renting households in England are in London

    Well yes. Given that 15% or so of Englanders live in London, that statistic is hardly remotely surprising. It means London is pretty much in line with all big cities, and not that much above the rural level come to that.

    Average house prices in London are now 10 times the average salary

    Not for Londoners they aren’t.

    London is a very big city. Very big. You really can’t average the prices in the centre with those on the outside for a meaningful number. Inner city London prices are driven by totally different criteria to the outskirts. Millionaires buying toffy apartments in the inner city don’t drive up prices in the suburbs, and averaging the prices as if they do isn’t helpful.

    There is a problem, and it isn’t the price of inner city London houses. It is that all England needs to start building houses, not just London.

  13. Selohesra

    They have given us EU referendum – so at least we may get a chance to control borders

  14. CGR

    Uncontrolled immigration means that there are too many people. That is the cause of high house prices and the pressure on the NHS and our benefits system.

  15. Woo11

    Ok so selling off just reduced housing for millions of lower waged, sorry, didn’t specify. Now we have ex-council flats selling for £1,000,000 in London, sure as hell reduces access if not stock! Oh and some of those high rises are now “des-res”

  16. Brad JJ

    Just ignore the hundreds of thousands of flats that were dynamited.

  17. Woo11

    Not ignoring it, you should research why they were demolished.

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