Research from Lloyds Banking Group showed that those living in the capital city believe issues around affordability are likely to get worse, with around two thirds (67%) expecting house prices will continue to increase over the next three years.
With the average house price in London now at more than £550,000, climbing 4% since the start of the pandemic, affordability was top (68%) among the housing concerns of Londoners. Others were lack of social housing being built (50%); deposit requirements (40%); lack of availability of quality, affordable rental properties (44%); and lack of new houses being built (31%).
“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,” Simon Kenyon, Lloyds Banking Group’s ambassador for London, said.
Read more: UK house prices surge – reaction pours in.
“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.”
The banking group’s research also found that 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.
However, for Londoners, transport links (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%).
“The findings of this research echoes what we hear all the time from aspiring first time buyers; Londoners want a space they can call their own without having to compromise on the many benefits of city living. There are simply not enough affordable home ownership initiatives,” Marc Vlessing, chief executive officer at housing developer Pocket Living, said.
“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.”
