Friday, 16 December 2011

Is there really a housing crisis?


I'm just not sure how much of a problem we actually do have. For sure in London and some parts of the South East, rents and income have diverged - to the point where their affordability is open to question.

But the "there aren't enough houses" crisis - this would suggest rapidly rising rents everywhere. Which doesn't seem to be the case:

Private rents in England and Wales fell for the first time in 10 months in November, according to the latest buy-to-let index from property services firm LSL.

Average rent dropped by 0.4 per cent to £717 month, down from October’s figure of £720 per month. It is the first time there has been a month-on-month fall since January.

OK there are seasonal factors and rents have risen in some regions - but this doesn't suggest that, right this minute, there's a crisis level shortage of housing.


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