This means we will face prolonged, cascading pain into the housing sector and through the economy as a result, with first-time buyers also continually priced out.
To put this into perspective, figures from Cornerstone Tax, based on ONS data, shows that in the 1990s it would take three years to save a deposit for the average UK property, and four in London. Now it takes 13 years and 31 in London.
If we compare the UK to other nations, the UK has had one of the highest interest rates in the G7. While the UK has held its interest rate at 5.25 per cent, the European Central Bank cut its main interest rate from a record high of 4 per to 3.75 per cent.
That means that on the world stage, the UK’s housing affordability is still in the dark ages.
Yet housing is inextricably linked to productivity, economic growth, skills, and health.
As we move away from last year’s dip into recession, real growth in a time where we will probably not see interest rates reducing to levels enjoyed for so many years, can be spurred by finally getting it right when it comes to property supply, and helping homeowners.
Only radical reform will move us towards that point, and we have yet to see that from a single idea put forward by any politician yet.
Now Labour have been ushered in, all eyes will be on the Labour party to not just promise radical reform but deliver it.
Trevor Kearney is founder of The Private Office: Real Estate
