According to a recent report, nearly 100,000 families in England are priced out of the property market annually because of the scarcity of affordable homes to rent or buy. The number of the priced out homes have increased by 30,000. According to the Estate agent Savills report, the initial cost of the houses was 70,000 in 2015. Changes in the assessment of housing needs, increase in prices and stagnant wage growth led to this adjustment.
Chancellor Phillip Hammond suggested a plan to construct 300,000 houses by mid-2020s.He also came up with measures and policies that would push for setting up more houses. The project aimed at meeting the increasing need for affordable houses by offering them below the normal market rate. It would cater for the larger population where around 96,000 families could not afford houses at the normal market prices. Buying or renting a house was not easy for a large percentage of the population in London and the South due to inflated prices.
Different methods were needed to reduce the housing shortage in various parts of the country. In markets where income was low, more low cost rented houses would be set up. In more lavish areas a mixture of high-quality houses including those whose ownership can be shared due to high prices would dominate.
A research found that for the last three years 42,800 houses were needed at the capital with a market price below the normal. On the Contrary, only 8,800 were able to be constructed and made available. On the other hand, there were fewer were built in the southern part of London. The expected number of the houses that would host the vast population in this part was 34,100, but only 15,500 were put in place. Low incomes were also being experienced in northern England, and the number of houses available was below the demand. Majority of the population could not afford homes.
The accommodation problem was rapidly growing. Hammond and the prime minister offered more money for building supplementary houses and also changed some policies and rules governing housing to reduce the problem. The new policies stated that no changes would be made on the houses on the greenbelt land and no funds should be added to social hired households.