Two years on from the start of the pandemic, the property market has proved far more resilient than anyone could have imagined — or any expert forecast. The latest data from Halifax shows that London prices were £41,000 higher in March 2022 than two years ago.
There was a time when surging house prices were seen as a cause for celebration. But the capital is no longer a city where owner-occupiers are in the majority. Most of us now rent and will regard the remorseless increase in property values with dismay as the bottom rung of the ladder rises ever further out of reach.
With rents also hitting new peaks, London’s housing crisis appears as acute as ever. The urgent need for more high-quality affordable housing has never been more stark. Without it, London will struggle to hold on to its talent as it recovers from the pandemic that hit its economy harder than any other region.
Struggling Sunak
Gordon Brown was fond of quipping that there are two types of chancellors: those that fail and those that get out in time.
Two years ago, Rishi Sunak could do little wrong. He instituted a furlough scheme that prevented mass unemployment and protected living standards. The clean-up job was always going to prove more challenging, and less politically advantageous.
Yet his decision at the Spring Statement not to do more to help households suffering from the spiralling cost of living was misjudged. More recently, he has received criticism for his response to the partygate scandal and now the tax status of his wife. As such, his approval ratings have fallen dramatically.
Being Chancellor is not a popularity contest. Tough decisions are necessary in the best of times, and these are not those. More than overcoming political missteps, on everything from investment in energy to boosting productivity, Sunak must demonstrate he has the drive, vision and political savvy to prepare Britain for the challenges of the future.
