With all of these factors currently facing the Coalition, it is refreshing to see radical new ideas from councils around the country. Recently, Conservative-run Hammersmith & Fulham Council announced plans to place a cap on social housing. From April 2013, no couple earning more than £40,200 will be able to apply for social housing. Instead, a new focus will be placed on helping local low to middle earners, members of the armed forces and foster carers. This is welcome news.
In addition, H&F council are looking to end the concept of ‘a council house for life’ for new tenancies by imposing five year fixed-term tenancies, reduced to two years for tenants aged 18-25. This will encourage people to find a job and move on to their own home, freeing up the house for others.
There are a number of unique factors affecting housing in London. Prices are already far higher than the rest of the country. The election of socialist Francois Hollande, combined with his threats to introduce a 75% income tax and various wealth taxes, has created an exodus of French wealth creators to London. This in turn pushes prices up in central London, especially popular areas such as South Kensington. However, we cannot turn away this sort of investment in London, so we must look to other areas for solutions to our housing problems.