Theresa May took the stage at the Tories Annual Conference and took aim at the United Kingdom’s slumping housing market. The Prime Minister vowed to make the market a top priority of hers moving forward. The embattled May promised to put £2 billion into one of the UK’s most worrisome industries.
May’s Plan To Rejuvenate Housing
When May spoke at the podium, she said the £2 billion would be used to increase the supply of affordable homes throughout the UK. While that sounds generous, reports have recently surfaced detailing the extent of this project. That amount of cash means only 5,000 new homes per-year will be built for the next five years. This amounts to a grand total of 25,000 new homes built in that time period. Many citizens are left wondering how much of a positive impact May’s plan could really have on the market.
Researchers have concluded that May’s idea to construct 25,000 homes is just a fraction of what the market truly needs right now. At first, her announcement was viewed as a monumental move towards rejuvenating the market, but now it appears to be the first step in a long process. May has confidence in her plan though. Later on in her speech, she took aim at the handling of the housing market by past politicians. Only time will tell if May’s plan actually kick starts housing across the UK.
London House Prices Fall
House prices in London are currently declining at its fastest pace since 2009. All data accumulated throughout the month of September shows home values fell 2.7 percent from this time last year. It is the continuation of a troubling trend for the sought-after territory. The 0.7 percent decline in August was London’s first negative reading in more than six years. House prices have fallen once again – the average value of £582,000 is the lowest in two years.