One of the UK's biggest social problems is housing its burgeoning population. The full scale of immigration
(both from within and outside of the European Union), has been at least partly buried by successive governments.
This was for different reasons, with Labour trying to hide the massive impacts on white British communities, and the Tories trying to hide the fact that they had not regained control of our borders as promised .... these deceptions will all be uncovered before the EU referendum, when the current government publishes details of why the Office of National Statistics consistently shows a level of immigration, which is only one third of the annual issue of National Insurance Numbers
(a number without which you can't legally work in the UK).
However even without the undoubted large scale fraud surrounding these numbers
(as we have no national ID scheme), its fairly obvious that there is a problem with the large size of the discrepancy. But more of that in a future post ...... But whatever the reason, the fact is that house prices and availability of housing has not kept pace with the numbers of those seeking to buy their own home.
There are of course a number of factors involved with this:
- The recession since 2008, which has kept income inflation far lower than house price inflation.
- The reluctance of many to buy houses in certain areas (a colleague of mine in his late 20's wants his first home in an expensive area of a major city, so is still saving 'a deposit' even though he gets a lot more than the local average salary).
- The affordability of new or existing houses for new buyers.
Recent figures produced by
Lloyds Bank Research suggest that this last issue affordability, rather than actual supply, is the biggest driver of the inability to get on the housing ladder, and the reversal of the trend for home ownership. These figures suggest that the average city property, is 6.6 times higher than the average local salary and this gap is rising
(it was 6.2 last year) ... a rise of 8% in property prices .... and therein lies the problem.
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The First Step On The Housing Ladder Was Easier A Few Decades Ago ..... |