New data showing a sharp decline in property affordability in the UK capital will put pressure on the new London mayor after tomorrow’s election, experts say.
Research from crowdfunding platform Property Partner has found that since 2000, when Ken Livingstone became the city’s first elected mayor, the typical London house price has increased from 5.6 times average earnings to 11 times today – way above what most lenders would be willing to provide.
Dan Gandesha, CEO of Property Partner, said: “This research shines a harsh spotlight on the desperate issue of affordability in the capital, proving London’s current and former mayors - Ken and Boris - both failed on housing.
“Whoever wins on Thursday needs an innovative approach to help resolve the supply crisis. Neither of the two frontrunners have even been able to define ‘affordable’. What is crystal clear is that most Londoners are being priced out of the housing market as properties now stand at 11 times average earnings.”
Gandesha added: “The solution to the housing crisis in the capital must be radical. There’s no time to waste. Potentially unpopular solutions, like building on the green belt, should be seriously considered. Housebuilding needs to double to meet demand. It’s time to put options like property crowdfunding on the table as part of the answer.
“But perhaps the British obsession with mass home ownership needs to change too. With government support for build-to-rent initiatives, long-term renting could eventually fill the gap, with larger institutional landlords taking over the sector, providing affordable rents and professionally-managed properties rather than multiple, small private ones.”