As the housing crisis is plaguing London with supply unable to keep up with the growing population, experts are pitching in solutions to address the issue.
In a report from Daily Mail, the London Housing Commission is urging the U.K. government to give the mayor of London and city boroughs more authority that would enable them to increase the number of houses needed. This includes land use, planning rules, property taxes and investment to name a few. The commission believes that by giving London leaders direct responsibilities to these key areas, there will be a substantial development in building homes.
"The next strategy for London housing requires two phases. First, there is a number of actions the mayor and the boroughs can take immediately to boost housing supply. Beyond that, there are a series of longer-term reforms, including devolving powers to the mayor and the boroughs, which would make further inroads into the housing crisis, and maintain the momentum behind the efforts of the mayor and boroughs," explained Lord Kerslake, the leader of the panel.
Currently, the country is able to deliver 25,000 units annually, but that is only half of the needed supply to match the population growth. Lord Kerlake warns that there needs something to be done, otherwise, the city will see a worsening affordability and scarcity of homes.
In an earlier report here on Realty Today, London house prices are said to be becoming beyond affordable. This is particularly true for the lowest-paid workers who are having a hard time renting, much more owning a house in the city. As a result, they are forced to live outside London, far from their jobs. In 2015, house prices in London saw a significant increase of 12.4 percent. By December, the average price of a house in the city was at £514,097 ($740,400).
