With house prices on the up, a recent BBC news item focused on housing affordability in Cornwall.
Professor Peter Gripaios, Emeritus Professor of Economics at Plymouth University, said affordability could get worse as house prices start to rise in the region. “Prices really went up from 1999 to 2007 then they levelled off a bit with the recession, but it now looks as if they’re going up again,” he said. “There’s a very big affordability problem in the South West – in fact house prices to earnings are some of the highest in the country and only lag behind parts of London and the South East.”
Prof Gripaios said Devon and Cornwall suffered more from affordability because of “London money” coming into the South West to buy second homes and retirement properties. While movement of people from the South East undoubtedly brought money into the local economy, the benefits were, in his opinion, limited to particular areas and did not extend to the whole region. “Local people can’t afford to live where they want to live and have to move away from family and friends,” he added.
Comment Well what can we say? We have highlighted the problems caused by ‘hot’ money flowing into Cornwall and pushing up house prices (as well as reducing supply), in numerous blogs.
Its time for action on the planning front to redress this problem!