Londoners are the most dissatisfied group in the country when it comes to local housing, with three-quarters of people in the capital saying they do not believe the market helps them find affordable homes, according to a Lloyds Banking Group survey.
The average price of a home in London has lifted by 4% since the start of the pandemic to more than £550,000, and 67% of Londoners expect house prices to continue to climb over the next three years.
“Homeowners and renters agree that house prices are the biggest issue facing the market and are sceptical that the industry can adapt and deliver the affordable, quality homes London needs as it recovers from the pandemic,” says the high street bank’s report.
The top concerns among Londoners include unaffordable house prices, 68%, a lack of social housing being built 50%, deposit requirements 40%, and a lack of availability of quality, affordable rental properties, 44%.
Other worries include a lack of new houses being built, 31%, economic issues caused by the pandemic, 25%, and Brexit’s impact on the economy and supply chains, 23%.
Lloyds Banking Group’s Ambassador for London Simon Kenyon says: “House prices and transaction volumes, even among first-time buyers, have remained strong during the pandemic. However, this research also shows that many people in London consider the continued strength of prices as the biggest factor preventing people from accessing quality and affordable homes.
“At the same time the pandemic is reshaping what we want from our homes, but many people in London feel that currently where, and how, homes are being built is not meeting the needs of their local communities.
“Understanding these local trends, will be vitally important in ensuring the homes being built keep pace with the changing needs of individuals and local communities.”
Over the last year, many transactions across the country have been driven by the high number of people planning to work from home in the long term, the survey says.
But for Londoners, transport links, mentioned by 67%, living near lots of amenities, 49%, and living in an attractive area, 43%, are still considered the most important factors in choosing where to live, in comparison to living near friends and family, 39%, or having as big a garden as possible, 28%.
However, the report adds: “When it comes to our homes themselves, the need for more space in the capital looks set to be one of the most important factors driving buying decisions over the next few years.”
It says a garden is seen as the most important feature in a capital home, with 42% stating they would prioritise that first, followed by more living space, 41%, and more efficient heating, 34%.
Just over a third of Londoners, or 39%, said they would pay more than they would otherwise for a home with a garden, the report adds.
Affordable home developer Pocket Living’s chief executive Marc Vlessing says: “The findings of this research echoes what we hear all the time from aspiring FTBs – Londoners want a space they can call their own without having to compromise on the many benefits of city living.”
He says, “there are simply not enough” affordable homeownership initiatives” that allow “young people and key workers to stay in the communities they contribute so much to”.
Vlessing adds: “However, if we are to accelerate this to the next level, we need to see ambitious planning reform that encourages greater innovation in the market and that unlocks the potential of urban brownfield sites for affordable housing.”
Lloyds Banking Group commissioned data body YouGov to carry out this online survey, which questioned a representative sample of 6,442 adults – 810 in London – between 4 and 8 November 2021.
