Tag: affordability

Halifax have published a great little fact sheet on some key housing trends over the last 50 years. The most dramatic is that the cost of buying a home has risen 273% above incomes over that period, with the sharpest rise during the 2000s when they rose by 63%. This is the increasing cost of housing adjusted for increases in income; or adjusting for inflation to state rises in real terms, for economists. Imagine if food or heating bills rose that quickly compared to incomes! Whilst the property-owning journalists hail this rise in house prices, more and more people are squeezed out of the market, or forced to sacrifice huge chunks of their salary to repay mortgages. Jenny Jones published a report on the housing crisis in London recently. She shows that over the past decade the cost of buying a home doubled in London, well above the national rise…

Read More The cost of housing doubles in London

You don’t often see national newspapers celebrating a drop in house prices, despite the fact that they rose twice as fast as average incomes in the past decade. It’s much like the coverage of any strike that might affect a journalist’s holidays plans. Most journalists and commentators are wealthy middle class home owners, so they are heavily invested in maintaining this trend of above-income-inflation house price rises. There are two main reasons for this trend: first, house building supply never came close to meeting demand; second, cheap credit created a bubble that massively over-inflated the value of homes. Here in London, households with incomes up to an incredible £74,000 are soon to become eligible for “affordable housing”, which you can buy up bit by bit. Us paupers on a mere £74k are no longer able to buy a home otherwise. In the past year this trend has very slightly eased,…

Read More God bless you, lucky home owners

Dave Hill writes in his Guardian blog about Boris Johnson’s housing plans for London. What could be more important to Londoners than housing that is affordable for all, of a decent quality, energy efficient and in the place they want to live? He has done great work on this topic, but he misses some basic facts and figures that expose just what Boris’ priorities are. All the evidence shows that London needs a mix of new social, intermediate and market (private) housing that is evenly spread around the city – much like this photo, which I took in south Camberwell. The most pressing need is for social housing, and to end “segregation by tenure”, where your income determines which ghettoised community you can live in. Thankfully my patch is pretty integrated, but go down into Dulwich or up to Elephant & Castle and you quickly enter predominantly rich and poor…

Read More Getting a home we can afford