The UK’s capital city may pose ample opportunities for contract work, but the prospect of getting on to London’s property ladder appears to be diminishing at a pace after reports that house prices in the area rose by 10% in the space of just one month.
Data from Rightmove indicated an average increase of £50,484 in asking prices for property situated in the capital from mid-September to mid-October, meaning that contractors may now have to trump up a hefty sum of £544,232 for a place on London’s property ladder.
The rapid increase in the cost of London’s housing has been labelled as “scary” by the Labour government, who are currently investigating ways to tackle the issue as prices surge beyond an affordable level. The party is looking at policies to stem “unhealthy” and excessive growth in the city, which include blitzing empty homes and land banking, with a view to providing more affordable homes in the capital.
Housing Minister Emma Reynolds described the problem of rapidly increasing house prices in London as “massive”. She commented “Hardly anyone on middle income can buy in central London and it is something we need to look at. Land banking is an issue and there are many specific London problems we are looking at in more detail.”
Reynolds also acknowledged that whilst London is the largest ‘problem area’, demand for property is outweighing supply across the entire country. Reynolds also spoke of her concerns surrounding a ‘ripple effect’ stemming beyond the UK’s capital. The minister stated that whilst increasing prices in housing market are posing problems in different parts of the country, the expectant growth of the capital’s population has created a need for the party to explore this area ‘specifically’.
Labour’s efforts to stem fast paced price increases in an area where there are ample opportunities for contract work comes as the party recognised the importance of independent professionals last week. Following a roundtable organised by PCG and the Fabian Society at the House of Commons, senior members of the party met with academics and trade associations to explore ways that the labour party can further support the contractor community.
Simon McVicker, Director of Policy and Public Affairs at PCG, described the event as a “great success”, and said “The Labour Party are beginning to recognise the importance of freelancers in the UK economy and understand this unique way of working.” McViker stated that he was looking forward to working in partnership with panel members “to ensure freelancers’ voices are heard when it comes to creating new Labour economic policies.”
Whilst is it clear that the government are getting behind contractors, that state of the housing market remains somewhat unpredictable. Taj Kang, Business Development Director at Contractor Mortgages Made Easy said “It is great to see that the government are recognising contractors and making a conscious effort to stem house prices, but the market remains relatively unpredictable and it is still unclear as to how long the growth in prices will last, both in London and across the country. Although the government is trying to ensure that contractors stand a chance in a turbulent market, contractors would be wise to move quickly whilst rates remain low and house prices are still affordable.”
Article By: Jon Shields, Media Executive at Contractor Mortgages Made Easy
Media Contact: Raman Kaur, Public Relations Manager
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