Alex Hilton (me) brandishing the Evening Standard today
The Evening Standard today splashes on an exclusive YouGov poll in which 50% of Londoners want house prices to decrease. The Housing Minister Kris Hopkins, Chancellor George Osborne and London Mayor Boris Johnson have all stated publicly that they want house price rises to continue.
With half of Britain's renters in London and the South East, these powerful politicians are increasingly at odds with the public's day to day experience of the economy. They are also ignoring warnings from the Bank of England Governor Mark Carney, who has called the current state of the housing market "the biggest single threat to the economic recovery".
Right now, politicians seem happy for a free housing market to grind down renters as long as homeowners and landlords are content, and so they have offered no real solutions. We have offered a solution. Our paper, Buying out of the Bubble, outlines how a secondary, bubble-free housing market can be developed, offering low cost housing to people willing to forego free market-level returns in capital gain or rents.
A secondary housing market would provide affordable housing for those people who just want a home, not an investment, while insulating the free market from what will otherwise become a traumatic market adjustment, with dire consequences for London's economy.
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