House Prices Flashcards

1
Q

What’s your evidence that there’s a problem with affordability?

A

The pace of house price growth is far beyond that of wage increases:
Housing costs have risen twice as fast as the incomes of Britain’s under-44s (Social Mobility Commission)

Record numbers of people in their thirties have left London in the past three years and key workers are unable to live in London due to price:
A 2016 survey of the Metropolitan Police found that over half of police officers didn’t live in London, the main reason for this being affordability

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2
Q

Does the problem exist in outer London too?

A

In outer London the problem is almost as bad with homes 9 times the average salary of those living there.

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3
Q

The UK Government’s white paper said that lack of supply was the problem, not demand. Do you disagree?

A

The Gov paper looks to address UK-wide housing issues.

Reports which have purely assessed London’s housing crisis such as the Bow Group’s, Civitas’ and the Smith Institute’s place more emphasis on the demand side.
They each state that high levels of overseas investment in recent years have been the primary driving force behind rising house prices.

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