Almost two thirds of Londoners expect house prices to continue to rise over the next three years as house prices climb 4 percent since the start of the pandemic.
Increased demand has resulted in 75 percent of people in London saying that they do not believe the housing market is currently helping people access affordable and quality homes.
According to research from Lloyds Banking Group, Londoners are the most dissatisfied in the country when it comes to the housing market in their local area.
Top concerns amongst Londoners still include unaffordable house prices (68 percent), lack of social housing being built (50 percent), deposit requirements (40 percent) and a lack of availability of quality, affordable rental properties (44 percent). Other considerations include a lack of new houses being built (31 percent), economic issues caused by the pandemic (25 percent), and Brexit’s impact on the economy and supply chains (23 percent).
Across the capital, both homeowners and renters agree that house prices are the biggest issue facing the market and are sceptical that the industry can adapt and deliver the affordable, quality homes London needs as it recovers from the pandemic.
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With the average house price in London now at more than £550,000, Londoners believe issues around affordability are likely to get worse, with around two thirds (67 percent) believing house prices will continue to increase over the next three years.
Beyond affordability, many respondents suggested that new homes in their local area aren’t being built in places where people want to live (45 percent) – with more than half of Londoners (55 percent) frustrated that new homes aren’t meeting the needs of the local area.
Simon Kenyon, Lloyds Banking Group’s Ambassador for London, said: “House prices and transaction volumes, even among first time-buyers, have remained strong during the pandemic. However, this research also shows that many people in London consider the continued strength of prices as the biggest factor preventing people from accessing quality and affordable homes.
“At the same time the pandemic is reshaping what we want from our homes, but many people in London feel that currently where, and how, homes are being built is not meeting the needs of their local communities.
“Understanding these local trends will be vitally important in ensuring the homes being built keep pace with the changing needs of individuals and local communities. That’s why, as part of our commitment to help Britain prosper, we are working across the industry to collectively work-out how we deliver the high-quality, sustainable and affordable homes that London needs.”
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