EY Comment: Focus on London is right solution to housing bubble - EY ITEM
19 March 2014
Andrew Goodwin senior economic adviser to the EY ITEM Club, comments on today’s housing announcement:
“Housing has been a recurring theme in Osborne’s Budgets and this one was no exception. His previous interventions had been well-judged and today’s announcements provide similar evidence of joined-up thinking. Most of his previous announcements were related to getting housing demand moving again, but he is now steadily switching emphasis toward supply.
“The focus on schemes in and around London looks particularly sensible. London is the only part of the market where there is danger of a bubble developing and is the area where supply shortages are most acute. Building a new garden city in Ebbsfleet and building the infrastructure to unlock development in Barking and Brent shows that the government is targeting areas where jobs are being created and people want to live - this is the right solution and should help to address concerns of a bubble developing in the capital”.
For more information on the 2014 Budget, visit the EY 2014 Budget page.