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House prices in the southeast are far too high for people to afford

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Introduction

'House prices in the southeast are far too high for people to afford' The above statement is supported by the latest Regional Trends report which stated that, "household expenditure and housing cost for those living in the south are higher than the national average and house prices continue to rise at a faster rate." There is an astounding difference in the prices of properties in different regions of the UK. An example is of this is of a three bedroom properties that requires some modernisation in London would dig a hole in your pocket at a price of �275,000. Whilst in contrast, a property with similar specification, which does not require any renovations in Birmingham as of the London property, would be a ridiculous saving of �206,500 at only �68,500! Average London house prices have now broken through the �200,000 barrier for the first time, increasing fears that prices are unsustainable. Greater London is the most expensive place in the UK to buy a house with average prices rising by 6.65% per cent to �205,831 at the end of June from �193,004 a year earlier. ...read more.

Middle

In addition, that total of households, earning less the �20,000 a year, excludes those who are already being housed in the social sector by either local authorities or housing associations. Many of those people will fall into the category of key workers like teachers and nurses or they will be working in low-paid service industry jobs. If those people can't afford to live in the Capital then the labour shortage, which already exists, and is hampering business activity, will get worse. The Mayor's recent Housing Commission recommended building an extra 43,000 houses each year to meet projected demand with 29,000 of them in the affordable to those on moderate to low incomes. But FPD Savills' Director of Residential Research, Richard Donnell, said, "This will require London's current housing output to be increased by a factor of three and sustained for the next 10 years. This is simply not realistic or feasible given the chronic lack of suitable land." The population of the country has risen from 52.8 million to 58.2 million in the period of 32 years between 1961to ...read more.

Conclusion

The opportunity cost of living in London is less pollution, less traffic, more community spirit, more space and bigger houses for the same price of a smaller one in the city. In addition, the loss time spent travelling and cost of travelling is accountable. In conclusion, a general assumption can be made that whilst the rich established and single younger working generation are able to afford to pay the rising house prices. Those disadvantaged, are ones that have a family to look after, as well as the old and retired population that do not necessary need to live in the city in the first place. For most, house prices are too high for people to afford. The Halifax survey said: "Low mortgage rates and a continuing strengthening in economic activity should underpin a relatively strong housing market during the remainder of this year and through 2000." The Mayor of London, Ken Livingstone has made a proposal to build more properties to meet the demands, we just have to wait and see whether price inequality in the different regions of the country would ever balance out. ...read more.

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