Ahead of tomorrow’s London mayoral election, we ask whether any of the candidates will be able to face up to the challenge of solving the capital’s housing crisis.
While all of the candidates have promised to tackle the shortage of supply in London, data shows that their predecessors have not done a great job of making the capital affordable for all.
Figures from Property Partner, a buy-to-let crowdfunding platform, show that when Ken Livingstone became Mayor of London in 2000, the average house price in the capital was 5.6 times typical earnings. Under the present mayor, Boris Johnson, prices have more than doubled, to 11 times the average salary.
The front-runners in the current election, Sadiq Khan and Zac Goldsmith, have quite a challenge in store for them when the decision is made.
When Labour’s Livingstone was elected as the first Mayor of London in 2000, house prices were 5.6 times earnings. By the time he left office in 2008, this figure had risen to 8.3.
Under the Conservative Johnson, prices soared to 11 times earnings, with five out of 33 London boroughs in double digits. This figure is highest in Kensington and Chelsea, where the average property cost 14.43 times earnings in 2000, 24.83 in 2008, and a whopping 38.08 in 2015.
Hackney has recorded the greatest growth, from 5.59 in 2000, to 8.58 in 2008 and now 14.68.
The Chief Executive of Property Partner, Dan Gandesha, says: “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 tomorrow needs an innovative approach to help resolve the supply crisis. Neither of the two front-runners has 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.”
He insists: “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.”
With the election so close, now is a good time to look at what each candidate can do to solve the housing crisis. Review their pledges here: https://landlordnews.co.uk/london-mayoral-candidate-will-solve-housing-crisis/