London’s unsustainable housing policy is failing ordinary Londoners, who are priced out of London’s overheating property market (1), and are being forced into the clutches of unscrupulous investor-owners, says the Green Party.
The London Green Party’s Crumbs for Londoners report (2) calls for a sustainable housing policy, which prioritises providing affordable homes for Londoners over generating investment opportunities for investor-owners. The Green Party is committed to massive investment in new social housing and more secure tenancies and smart controls to stabilise rapidly rising rents (3).
“Years of bad policies from the Labour and the Coalition governments have benefitted wealthy landlords rather than ordinary Londoners”, said Green Party Leader Natalie Bennett. “With house prices now averaging a £441,000 – that’s a whopping 16 times the average local individual income – far too few households have a chance to put down permanent roots in the capital. London will lose out in the long-term.”
As London Assembly Member Darren Johnson's Crumbs for Londoners report reveals, the average Londoner can only afford around 3% of new homes currently on the market in London. That’s partly because many new flats are built for the benefit of investors, who get the first chance to buy them and can afford the astronomical prices.
Notes:
1) Mortgage brokers report that ‘gazumping’ in rife and prices are going through the roof as demand far exceeds supply. In today’s frenzied market properties are attracting around 80 viewings and 10 to 12 offers within two days of going on the market. A property, in need of full refurbishment, recently went on the market for £600,000 and, after 31 offers, sold for £853,000.
2) For more information on the London Green Party’s campaign for affordable housing, visit: http://www.crumbsforlondon.org.uk/
For Darren Johnson’s research on Mayor Boris Johnson’s housing strategy, seehttps://www.london.gov.uk/sites/default/files/Crumbs_for_Londoners.pdf
3) Average monthly cost of renting in London is £1,468 – 50% of average local take-home pay. For further information see the Valuation Office Agency report from December 2013: http://www.voa.gov.uk/corporate/statisticalReleases/131212_PrivateRentalMarket.html