Record housing shortage could force families out of property market
A record London housing shortage is set to send property prices
soaring even further out of reach of ordinary families, a new
report warns today.
One of the most detailed studies of the crisis, it suggests that
in the worst affected boroughs, such as Westminster, Redbridge and
Kingston, as few as 10 per cent of the homes needed over the next
decade are being built.
The report says: "Around two thirds of pipeline developments
have stalled... but even if these projects get off the ground there
will still be a huge shortfall in housing."
It predicts demand from overseas buyers and City workers will
continue to push prices up, creating new "hotspots" where
developments do get off the ground.
A spokesman for Boris Johnson said: "High prices, the fragile
economy and the credit squeeze are hampering private house
building, but affordable housing, both for rent and for first-time
buyers, which the Mayor directly influences, is in better
shape. This year will see more than 16,000 affordable homes
delivered in London and more than 54,000 over the next four