There is a housing shortage in London that has caught the city completely out of whack. Though the wealthy are happy enough unloading millions for ultra luxury condos and apartments, it seems there is not enough affordable housing for those with lesser incomes. Living expenses in London have reached an all time high, and even those making respectable salaries have had to look to the government for help.
“The very fact that people above the median household income in London require subsidized housing is a strong indication of market failure,” said Andrew Heywood, a consultant who has researched housing for the Smith Institute. Construction companies have been given interest free credit from the city, and are facing mounting pressure to produce housing as quickly as possible. The homes are then being sold for 20 percent below their market value.
London has become the second most expensive city to live in after Monaco. According to broker Knight Frank LLP housing in London has gone up an astonishing 17.7 percent this year. The average house now costs a whopping £458,000, the largest increase since July 2007. The U.K. Treasury has been facing pressure to release excess land that can be used to create more homes. A London’s Council poll showed that four out of five Londoners believed that the lack of affordable housing is indeed a crisis. One developer admitted he already has 14,000 people in his database but will only be constructing 4,000 units in the next decade. London it seems is slowly becoming a city that is unwelcoming of the common man.
Comment Template