UK government considers cap on rural homes

Photo: Mikecogh

The Telegraph reports that a group considering the future of rural parts of the UK, which is being overseen by Cabinet Secretary Sir Jeremy Heywood, has warned that radical could be required.

“Ideas of what a future rural scenario could look like were discussed, including the idea for mandating ‘affordability’ of property in perpetuity to ensure the property doesn’t get sold on for a higher price and therefore adding to the pressure of providing more affordable housing,” the document is quoted as saying.

“Attendees debated the viability of rural communities if this pressure was to continue, especially if the rural population grows older and wealthier.

“It was concluded that the provision of flexible, affordable housing in rural areas would continue to be a prominent issue in the future.”

eMoov CEO Russell Quirk comments: “The latest data highlighting the issue of affordable housing in Britain’s rural communities is certainly cause for concern. However despite the discomfort in rising prices in favoured rural areas and its impact on affordable housing prices, to artificially cap house prices is a very dangerous game to play.

“If we start to cap the price someone can sell their home at as a solution to the problem, where does it end? Will it be rolled out to towns and cities as well as the rural Britain? The crisis facing Britain’s housing markets, in their various guises, is the supply of housing and the lack of it. This is what’s pushing up prices and if this is addressed then the issue of escalating prices should solve itself.”