Affordable capital? Housing in London

Article

London is an expensive place to have a home. It faces unique challenges that combine to produce an increasingly unaffordable market for would-be owners and tenants alike. In particular, the government's welfare reforms will have a significant impact on the ability of London's citizens to buy or rent a decent home.

This case study report makes a series of policy recommendations aimed at reducing the worst effects of London's housing squeeze. These recommendations include:

  • increasing the supply of housing, for example by releasing more public land for development
  • improving the effectiveness of welfare reforms, including a short-term uplift in the housing allowance cap and a longer term move to devolve housing powers and responsibilities to the mayor
  • achieving reasonable regulation in the private rented sector, including exploring maximum base rents and forming a rent stabilisation body
  • increasing taxation of foreign buyers of prime London property by pressing ahead with various tax changes currently under consultation.

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