British rollercoaster property market

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Britain’s house price market has surged to its highest point in more than a decade.

According to the Office for National Statistics (ONS), house price growth is beginning to increase strongly across parts of the UK, with prices in London soaring by 11.6 per cent, which is more than double the UK average.

Campbell Robb, head of housing charity Shelter, pointed out how a ‘chronic shortage’ of affordable housing is preventing young people getting on to the property ladder.

In fact, it is the shortage of homes for sale to drive up prices, especially in the capital, and housing crisis is the main worry for 4 out of 5 Londoners, reports from a recent Ipsos MORI survey reveal.

According to a group of Labour MPs, not even a well-paid professional can now afford a mortgage for a family house somewhere in the capital.

In less than two decades, the increasing number of young adults still living with their family of origin has leapt by a quarter all over the country.

More than 3 million people aged between 20 and 34, which is equivalent to 26 per cent of the age group, are living with their parents, a report from ONS revealed.

However, London has the lowest proportion of stay at home adults, as a consistent number of people from that age group arrive in the capital from elsewhere, to either work or to study.

As if it was not enough, residential properties are predicted to rise by 27 per cent between next year and 2018, according to the independent office for budget responsibility.

In London, if they follow the current trend, they will rise by 50 per cent over the same period.

Communities need more homes and stabilised house prices. 

The Government should help to reduce competition between buyers, by up-scaling the level of construction and help tenants to become home owners.

Unless the situation changes, a consistent number of people will be left with no choice but to remain trapped in rented homes or to live with their parents, no matter how hard they work.