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London house prices ‘need’ to fall amid supply increase, housing minister says
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City AM
London house prices ‘need’ to fall amid supply increase, housing minister saysMatthew Pennycook said Labour wants to encourage developers to compete on volumeHouse prices “probably need” to fall in London, the housing minister has said, after insisting that the government’s 1.5m home building target could still be met.
Matthew Pennycook said Labour wants to encourage developers to compete on volume in order to ramp up housing supply and make homes more affordable.
Pennycook complained the current system of housebuilding “locks in an upward ratchet of land and house prices”, insisting that the government wanted to instead prioritise affordability.
“The private market as it’s currently constituted will not on its own initiative, even if it’s highly competitive, produce sufficient housing to meet overall housing need,” he said.
“Like straws on a camel’s back, [these factors] have combined to break building in London,” a report by the Centre for Policy Studies (CPS) said.