21 Jan 2019
Londoners are facing a housing crisis, as there exists a lack of affordable homes and economic issues are also hurting the city growth. As per latest reports, tenants are spending one-third of their earnings towards housing, while fifteen years ago, people were spending one-fifth of their incomes in rents. London YIMBY previous reports claimed rents have inflated by over 300 percent due to planning restrictions and the cost of development increased 75 percent. By 2025, it is expected the number of tenants in London will increase to 3.5 million. Last year 79 percent of the adults had moved to the capital city on rent and the average home price continues to increase, that is 5 times higher, in comparison to, 50 years ago.
Northern Cities Growing
As per ONS data, in 2002, 440,221 people were living in Manchester, and now there are over 555,610 people. The city underwent 26 percent growth in population, which mostly constitutes younger workers. In 2017, there were 129,458 young people in the city, although, in 2002, the number was 85,673. Better transportation facilities, job environment, and connectivity to nearby cities, culture and new developments in the city centre, is attracting young skilled professionals and students to Manchester. A record year of office take-up was reported in 2018, where 314 transactions were made of office area 1.75sq. ft. (or over) as per Manchester Office Agent forums report, and the largest acquisition was made by Booking.com i.e. the campus Manchester Goods Yard.
Government to scrap Right to Buy
Recently, the government called to scrap the Right-to-buy provision where 40 percent of the houses sold under the scheme have been rented us privately. The housing minister Kit Malthouse said under the Right-to-buy scheme, over 100,000 people have been given homes, since 2010, which includes over 17,000 in London. Housing revenue account borrowing cap has been lifted and many homes were built in places, where it was needed the most.
The British Property Federation (BPF) report claim the number of built-to-rent homes under construction increased 40 percent in 2018, and the number of such homes completed is 30 percent in the UK. There are total 139,508 built to rent (22% growth) under construction, completed or in the planning stage. There has been a significant drop in permitted development rights in the capital city for built to rents. PDR was granted for 30 percent of such homes in London but only 9 percent are under construction.
Housing Crisis and Micro Home Plans
The Adam Smith Institute, recently, proposed to construct micro homes, especially, designed for youngsters where the homes will be fitted with all amenities, and it will be built close to city centers, where there will be rooms for co-working and games. This will reduce inconvenience to young workers who spend hours in commuting every day. The company is preparing to build homes on 37sq.m space that will make use of space appropriately, and provide space to help people live close to the city centre.
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