What are the government actually doing to curb the increasing house prices and make it possible for younger buyer to get a foot on the ladder?
Homeownership is an aspiration for most young people in Britain, this is more than just an accomplishment, buying a property also offers financial security and stability. For many who rent this is total unobtainable, with rising house prices and rising rent this is becoming further and further from the reach of millennials.
Government have implemented various policies over the last decade to assist younger buyers; but at the same time house prices have continued to outstrip wage rises and other commodities. Landowners and developers are keeping prices high. Landowners sell at the highest price possible, developers want the greatest profits and do so by avoiding affordable house, cutting corners on quality and drip feeding the new units to the market. Government could intervene by giving local authorities the power to buy undeveloped land at its existing value and selling it on to developer who commit to build good quality, affordable housing in a timely manner. In the most recent white paper the government have instead lifted regulations on minimum size, encouraging developers to build tiny compact units. By relaxing planning regulations, we will see more planning applications granted, but this is not the problem, the issue is that developers are sitting on granted planning for almost half a million homes – government need to get these built!