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| Implications of the property price fall | Implications of the property price fall |
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| Larry Elliott (Opinion, 10 May) rightly welcomes a small fall in house prices reported by the Halifax. Greater housing market affordability promotes social mobility, helps young people get on the property ladder, and is beneficial to the economy. However, we need to inject a note of caution. House price figures from banks or building societies are only based on their own segments of the housing market. We have to wait for the publication of Land Registry data, which lag behind the headlines, before real house price trends can be uncovered. | Larry Elliott (Opinion, 10 May) rightly welcomes a small fall in house prices reported by the Halifax. Greater housing market affordability promotes social mobility, helps young people get on the property ladder, and is beneficial to the economy. However, we need to inject a note of caution. House price figures from banks or building societies are only based on their own segments of the housing market. We have to wait for the publication of Land Registry data, which lag behind the headlines, before real house price trends can be uncovered. |
| The small decline in house prices also needs to be placed within recent historical context. The average house price is now 7.9 times average earnings (9.1 times for newly built homes). To return to levels of housing affordability last seen 20 years ago, house prices would need to halve. Finally, the UK economy, economic wellbeing, and some elements of the welfare state are so linked to rising house prices, governments will tend to apply policy approaches that keep the housing market buoyant. A managed and ongoing reduction in house prices is desirable, but the consequences of rising numbers in negative equity and the deleterious effects on social services need to be considered too.Kevin GulliverOperational director, Human City Institute | The small decline in house prices also needs to be placed within recent historical context. The average house price is now 7.9 times average earnings (9.1 times for newly built homes). To return to levels of housing affordability last seen 20 years ago, house prices would need to halve. Finally, the UK economy, economic wellbeing, and some elements of the welfare state are so linked to rising house prices, governments will tend to apply policy approaches that keep the housing market buoyant. A managed and ongoing reduction in house prices is desirable, but the consequences of rising numbers in negative equity and the deleterious effects on social services need to be considered too.Kevin GulliverOperational director, Human City Institute |
| • Given that you trail Larry Elliott’s piece on p1 of the Journal and coupled with the report by Rhiannon Lucy Cosslett, same issue, on the mental stresses on “generation rent” (‘I have sleepless nights stressing about the future’, G2), may we hope that the need for a decline in house prices might become the Guardian’s official leader line? I write as one whose house, bought 50-odd years ago, is indeed our greatest asset – but who fears for our grandchildren’s generation.Peter FiddickKew, Surrey | • Given that you trail Larry Elliott’s piece on p1 of the Journal and coupled with the report by Rhiannon Lucy Cosslett, same issue, on the mental stresses on “generation rent” (‘I have sleepless nights stressing about the future’, G2), may we hope that the need for a decline in house prices might become the Guardian’s official leader line? I write as one whose house, bought 50-odd years ago, is indeed our greatest asset – but who fears for our grandchildren’s generation.Peter FiddickKew, Surrey |
| • Last week’s letter from the Green New Deal Group (5 May) repeated a common plea for homes to be built on brownfield sites, as opposed to the green belt or countryside. Unfortunately, as a town dweller, I’ve seen the downside of this policy. In our town, any available space, including back gardens, is seen as fair game for building. The result is loss of open space, light, privacy, parking spaces, vegetation and wildlife, while increasing noise and congestion. Housing over-density reduces the quality of life for all residents and visitors. As these are usually small developments, there is no requirement to make them affordable for local people or to prevent them being sold as second homes. Councils are unwilling or unable to refuse planning permission due to government planning targets and the misleading designation of brownfield sites. Objections from residents are ignored, making a mockery of local accountability.Mike PollardWareham, Dorset | • Last week’s letter from the Green New Deal Group (5 May) repeated a common plea for homes to be built on brownfield sites, as opposed to the green belt or countryside. Unfortunately, as a town dweller, I’ve seen the downside of this policy. In our town, any available space, including back gardens, is seen as fair game for building. The result is loss of open space, light, privacy, parking spaces, vegetation and wildlife, while increasing noise and congestion. Housing over-density reduces the quality of life for all residents and visitors. As these are usually small developments, there is no requirement to make them affordable for local people or to prevent them being sold as second homes. Councils are unwilling or unable to refuse planning permission due to government planning targets and the misleading designation of brownfield sites. Objections from residents are ignored, making a mockery of local accountability.Mike PollardWareham, Dorset |
| • Join the debate – email guardian.letters@theguardian.com | • Join the debate – email guardian.letters@theguardian.com |
| • Read more Guardian letters – click here to visit gu.com/letters | • Read more Guardian letters – click here to visit gu.com/letters |
| Housing | Housing |
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| Real estate | Real estate |
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| Renting property | |
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