Why London needs 50,000 new homes a year
* In the 12 months to September 2013 UK house prices increased by 3.8%
*House price growth is stable across most of the UK, although prices in London are increasing faster than the UK average
* Annual house price increases in England were driven by London (9.4%), the South East (4.0%) and Yorkshire and The Humber (3.0%)
* Excluding London and the South East, UK house prices increased by 1.4% in the 12 months to September 2013.
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London needs 50,000 new homes a year
That’s what Savills argues in its new report (or as they put it, the equivalent of 18 new Olympic Villages and roughly double the current building rate) which says that the biggest demand comes from households on incomes of less than £50,000 a year and that majority of new homes (57%) need to be aimed at the lower end of the market.
“Last time London’s population peaked at 8.9 million in the 1930s we were building around 60,000 homes a year,” said Susan Emmett, Savills residential research director. “Back then, the city was visibly overcrowded and there were slums to clear. Today our housing crisis is not as visible, but the signs are there behind closed doors. Unless we are careful, the shortage of homes will start to impact on London’s ability to compete. We will start to see businesses think twice about coming to a city where they can’t afford to house their employees.”
Pictured is a 3 bedroom cottage for sale in Wagg Lane, Probus, Truro TR2, on with Philip Martin for offers over £375,000
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