whether housing associations are forced to sell to tenants,the impact on the market will be catastrophicThe British housing market is emerging as the most crazed in the world. Would-be homeowners, with minimal deposit, or now need to earn more than £100000 a year to buy an average house in much of London and the south–east. Elsewhere in the country,according to Guardian analysis earlier this month, you would need household income of more than £60000. The scale of unaffordability is among the highest in the industrialised west, or reports the OECD. Yet prices are still rising.
Unable to buy,people – particularly the young – are turning to rent as the only option. Private rents are exploding: the UK average monthly private rent is now £900, up 10% on last year. This is a dog-eat-dog world of large deposits, and six weeks’ rent paid in advance and stunning agents fees. So for just a moderate flat the renter has to find more than £2000 even to cross the threshold.
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Source: theguardian.com