Yes, this is all part of the plan for growth, growth, growth, but a big part of the pitch is to provide homes for those currently priced out of the market. And that’s many or most of those under 30; or 40 even. The problem is and will be that just building 1.5m new homes does not make them affordable to those who need or want them. The basic economic theory of supply and demand does not apply to property in the same way as, say strawberries: that they get cheaper when there are a lot more around. Taylor Swift tickets are maybe a better analogy: demand increases to meet supply, and many are prepared to pay a lot more for the better ones. So those that want them are still not able to afford them without parental help. The answer for property is that, yes, it may come down in price a bit. But incomes have to rise to meet it halfway; and mortgages need to become both more available and affordable.
“Rental prices up 6.2% in 12 months to January – ONS”
The number of under-40s, in particular, renting without apparent hope of buying has risen by over 20% in the last 15 years or so, more than has been the case in other countries whom we would consider comparable with us: in the US, around 6%, Germany 8%, for example.
