Why there’s only a housing crisis in London

You can’t go a day without hearing about the UK’s housing crisis in the media, how first-time buyers are locked out of the market, how it’s impossible to get a mortgage; and, of course, how there aren’t enough properties being built.

This is often presented as a country-wide problem; but it’s important to remember that this ‘crisis’ is mainly limited to London and the South East – places where people actually want to live and work.

London is one of the most popular cities in the world, so no wonder there’s a shortage of decent property – especially when previous governments have failed to meet the needs of its burgeoning population. The shortage in supply has meant that property prices London rose by 10.9% over the previous year to an average of £474,544, and by 8.8% in the South East. However, prices actually slipped in Wales and the north-east of England, by 1.1% and 0.6% respectively, demonstrating that the issue is linked to parts of the country where it’s easiest to find work.

This is why London’s a great place in which to purchase a property. So many people want to come here it’s going to be very difficult for supply to meet demand. The newly-elected Conservative government has promised to build 200,000 new homes a year by 2020 (for first-time buyers at a discount); as well as 400,000 homes on former brownfield sites; but will this be enough and will people really be able to afford them without overloading themselves with debt? After all, there are stricter rules about borrowing now so it’s hard to predict as to whether this will make much difference.

And of course, there’s the question as to whether governments will actually be able to meet this shortfall and build enough to meet the needs of the booming population, which is set to top 10 million in the next 15 years, as people come to look for jobs or even start businesses. Other parts of the country simply don’t match London in terms of population; even industrial areas such as Greater Manchester’s population is 2,553,379 in comparison to Greater London’s 9,787,426.

Here are other reasons from Belgravia estate agent, Best Gapp as to why London’s so appealing:

Business:

The legend says that Dick Whittington came to London hearing that the ‘streets were paved with gold’ and made it to be Lord Mayor of London! The legend still stands in many ways, with the City of London a bustling financial centre that’s at the heart of the world economy. The UK capital is also the centre of entrepreneurship, with Tech City and Google Campus close to the City and attracting ambitious and talented people from across the world. The more London expands, the more jobs there are and the more the population will increase.

Centre of learning:

London boasts some of the best universities in the world, from London School of Economics (LSE) to University College of London (UCL) to King’s College London. This attracts the best and the brightest to the city. As well as this, there are top schools such as Westminster School in the centre, to City of London School for Girls, to St Paul’s (both boys and girls schools) in Barnes and Hammersmith. This is partly why foreign buyers are also pouring their capital into London’s proper

 

Tourist attractions:

London’s famous across the world for its tourist attractions. From the British Museum to the National Gallery, to the Tate Modern and London Zoo; many of these are very affordable or free. It’s always easy to find something to do, the entertainment and cultural options are limitless.

All of the evidence shows that buying in London is a win-win situation. The city drives the UK’s economic prosperity and more and more talented people will be moving there over the next couple of decades, so it will be extremely difficult for governments to meet demand for housing. This low supply will push prices up – global forecaster Oxford Economics has revealed that London house prices are set to average £1 million by 2030. Prime London especially is a great place for culture, entertainment and work, so we suggest you seriously consider investing in a property here.

Disclaimer: All of the above can be disregarded in the event that aliens land on Westminster and/or there’s a nuclear apocalypse.

 

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