A new report from the National Housing Federation is stark: unless we build the homes we need, London’s housing crisis is going to get even worse. The result will be skyrocketing prices, pushing home ownership even further out of the sights of most Londoners, and skyrocketing rents, forcing even more working families to take housing benefit.
Home Truths, from the organisation that represents housing associations, forecasts some worrying trends for London. The cost of the average London home, which is now 16 times the average London wage, will rise to 18 times the average wage by 2020 when the average house price will be £647,500. Private sector rents will soar by 39 per cent over this period.
The only solution is to build more homes.
Labour has a plan. The Rebuilding Britain Commission, chaired by Sir Michael Lyons, will investigate the barriers currently preventing homes from being built and offer a roadmap for the next Government. Ed Miliband has pledged to build 200,000 homes a year by 2020, which will be accomplished by ensuring proper cooperation between neighbouring local authorities and by the creation of new towns.