London Flats Costing Up To £1m Outsell More Affordable Homes
As we continue to watch the price of properties rise, it comes as a shock to learn that in London last year, property developers sold more apartments valued between £650,000 and £1m than cheaper priced homes of £300,000. These figures, obtained from more than 600 new housing projects, show that properties are being successfully sold to the richest house hunters despite younger buyers being adamant that they have been ‘priced out’ of the market.
As stated by John Healey, “For young people and families on ordinary incomes, these figures will make infuriating reading…To afford a £1m apartment, buyers could need an annual income of £200,000 – it’s simply out of sight for most people. The wider truth is that in many areas of the country, house prices have become completely detached from local incomes.” This reality means that many – including families, have to look out of the capital for housing opportunities.
However, there might be a light at the end of the tunnel – last year, David Cameron announced a new scheme which aims to give about 200,000 first time buyers, aged under 40, a 20% discount on new start homes. With these homes believed to cost no more that £450,000 within London, there is hope that potentially young buyers will continue to stay in the capital.
But the issue goes beyond the idea of affordability – we have to consider the consequences felt if the property market continue to boom. With younger buyers moving on out, the growth and sustainability of businesses could potentially falter. This will also have a domino effect on renters – as house prices continue to spike so too will rental prices, pushing individuals to the outskirts.
London is a city that has thrived equally on business and culture. It relies on inner city culture to drive its appeal and without it, what would sustain that?