Why does London’s housing crisis matter to the UK economy?


Self-employed publicist Haddy Folivi, 48, moved from London to Peterborough in 2021 with her two children.

Born and raised in Hackney, she said house prices in the capital had become “ridiculous”, and the main driver for her to leave.

“For a house with a room each for my kids, we were looking at around £500,000.

“I didn’t want to overstretch myself and pay thousands of pounds a month on a mortgage. I wanted to get something affordable for us as a family.”

She says many families in London, including many of her friends, are being “forced out”.

Ms Folivi is part of a “mass exodus” of people being priced out of London, according to Paul Rickard, CEO of affordable housing provider Pocket Living.

According to its poll of 1,000 people aged 25-45 in Greater London:

  • 42% said although they didn’t want to move out of London, they may have no choice

  • Almost two-thirds of young people rely on some form of borrowing to cover their housing payments.

Mr Rickard says in the five years they have been running the survey, “these are some of the most concerning findings we have seen”.

“London’s housing crisis has deepened into something more corrosive: an affordability breakdown that is reshaping how a generation lives, works and plans for the future.”


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