Causes of inflation in London's housing market

Meeting: 
MQT on 2014-11-19
Session date: 
November 19, 2014
Reference: 
2014/4265
Question By: 
Stephen Knight
Organisation: 
Liberal Democrats
Asked Of: 
The Mayor

Question

In terms of the recent high rates of inflation in London's housing market, what do you believe to have been the relative importance of (a) new supply not matching population growth, and (b) growing demand from investors increasingly seeing London homes as a profitable asset class?

Answer

Answer for Causes of inflation in London's housing market

Answer for Causes of inflation in London's housing market

Answered By: 
The Mayor

I have not made any estimate of the relative importance of the factors you mention, but I believe recent growth has also been influenced by the welcome resurgence of mortgage lending to first time buyers.