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.

Related items

  1. Entrance sign at the Foreign, Commonwealth and Development office in Westminster

    Reset: Building modern partnerships with the countries of the global south

    The UK's relationships with many countries of the ‘global south’ are in a poor state.
  2. Doctor with patient for consultation, medical advice or procedure at clinic

    Taken to heart: Inequalities in heart disease in Scotland

    More than 7.6 million people across the UK live with cardiovascular disease (CVD), around twice as many as live with Alzheimer’s disease and cancer combined. 
  3. A beautiful sunset in the Scottish highlands with renewable energy wind turbines far into the horizon

    Skills passports: An essential part of a fair transition

    This month, government will publish its Clean Energy Workforce Strategy. This plan covers two aims. First, filling the growing demand for skills in clean energy industries is essential to keep on track to reach the government’s clean power…