uk housing

Policies to ease pressure on the housing market

Policies to ease pressure on the housing market

Readers Question: What policies could be used to ease pressure on housing market? Firstly, the main pressure in the UK housing market is the persistent and continued above inflation price increases. Back in 2004, Kate Barker’s report into housing market trends found that the UK would need to build 250,000 houses to reduce the house price inflation rate to 1.1%. But, since 2004, the UK housing market has fallen short of this target. In the middle of the recession, the number of home starts fell to just over 100,000….

UK House Price to income ratio and affordability

UK House Price to income ratio and affordability

An examination of UK house price affordability. In 2013, UK house prices rose 8%, and most forecasters expect UK house prices to continue to rise above inflation in the short term. However, there is a big concern that house prices are already unaffordable for most first time buyers. In many parts of the country, potential buyers are being kept out of the market due to house prices being much  higher than average incomes. Because of the lack of affordable housing, many have criticised the government’s Right to Buy scheme -…