Government admits housing market is ‘broken’

The government has recently admitted that the UK’s housing market is “broken”, as it revealed the eagerly anticipated White Paper for housing.

Sajid Javid, the communities secretary, spoke to the House of Commons, saying that the average price of a house is now equivalent to 7.5 times the average income, and that rent in some areas of the UK had increased to more than half of net pay. He added that the low levels of housing being built during the last 30 years was to blame for the current situation.

Although the White Paper states that the numbers of houses to be built needs to reach between 225,000 and 275,000 units a year, it also stated that more properties in urban areas would have to be built, building upwards where possible. It was also added that the size of homes may have to become smaller, as space is in shortage.

Speaking to MPs, Javid added that more homes were required, and building has to start immediately. Campaign groups reacted to the White Paper by pointing out that it offered very little to private renters in the UK.

Dan Wilson Craw, of Generation Rent, stated that high rents will continue to be a problem until sufficient homes are built to cover the shortage. He also stated that many current renters would be stuck living in short tenancy accommodation.

For some renters, buying a home may be an option as interest rates are at their lowest level. Speaking to a CeMAP qualified mortgage adviser may reveal that buying a home is a possibility.



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