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The UK's worsening Housing Crisis

The UK 'National Housing Federation' has just published its annual report on the state of the UK housing market, Titled 'Home Truths'. The blurb says:

"Home Truths: The case for 70,000 new social homes a year, is our annual state of the nation report on housing supply and affordability. It gives the latest facts and figures on housing in an easily digestible format, and includes new projections showing that the average house price in England will break the £300,000 barrier by 2012."

It emphasises the growing mis-match between supply and demand and shows why it is essential that the Government stands by its Green Paper commitment to deliver 70,000 social homes a year.

The report is 17 pages long and highlights trends (which have London impacts intensified by the gentrification effects of the 2012 Olympics) including:

  • "Unless we do something radical about housing supply, our housing market will continue to be distorted and dysfunctional. A generation of would-be home owners will have their aspirations dashed or achieve them only at enormous financial and personal cost."
  • The crisis in the the current and projected supply of affordable/social housing.
  • "the recent surge in prices in London has put the capital back in the position of being the most unaffordable place to buy a home - house prices are now 13 times average income."
  • "A further 148,000 Buy-to-Let mortgages were taken out in 2006, bringing the total to 850,000, over seven times higher than in 2000. Oxford Economics argues that the increase in Buy-to-Let and second homes is 'undoubtedly contributing to the overvaluation of housing'."

The report can be downloaded from Home Truths

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