King of your own castle? Not likely

House prices in London are rising by £90 a day - where prices have reached an all-time high - but are flat or falling in every other major city in the UKEver feel like your landlord charges so much that you work Monday to Wednesday just to pay someone you never see? If it’s any consolation, you’re not alone, but new evidence shows that long-term renting can take a toll on family life.

About two thirds of people in Britain own their houses – the lowest level since the mid-80s. The remaining third are finding it harder and harder to buy a house as banks are reluctant to lend them the money and house prices continue to go up – by £90 a day if you live in London and can believe the Daily Mail.

A new report by Shelter, the housing charity, says that 1 in 10 renting families had to change their children’s school because they could not afford to stay. Nearly three quarters of families (and 63% of all renters) said that they were behind with their rent or having difficulty paying it.

The charity made a bunch of recommendations, such as limiting rent increases for five years to the cost of living, but to cut a long story short, Britain has such a big housing problem because there aren’t enough. Housing prices increased in April at the fastest rate for a year (0.9% compared to the year before), which is great news for owners, but a right bummer if you are looking to buy. The average price is now £165,586.

Bottom line: there are many proposed solutions to fix Britain’s housing crisis, but the only one that’s really going to work involves building more.

One thought on “King of your own castle? Not likely

  1. silvermud

    Of course building more is necessary, however, only 3 years ago, The Guardian
    highlighted the staggering number of empty houses there are in the country. One problem is that they are not where the jobs are and economic intervention to stimulate employment in depressed areas is not flavour of the month, and hasn’t been for two decades. The second is that all governments, for the past god knows how many years, have encouraged house price inflation, to the detriment of the wider economy.

    http://www.guardian.co.uk/society/2010/apr/04/

    Reply

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