Three out of five Britons believe London is doomed to become “a ghetto for the super-rich.” This is one of several provocative findings that surfaced in JWT London’s sixth Austerity Index report, revealing a boiling pot of anxiety and tensions that are condensing into a hard-line stance on housing market regulation. As competition rises and affordability dips, a backlash is finding its target in immigrants, “transplants” and investors: Over a third of respondents in our study would even make it illegal for non-nationals to own property in the U.K.
Along with tracking the usual metrics to gauge the effect of prolonged austerity on British consumers, the latest survey looks at housing, which is becoming a serious and emotive problem in Britain. As wages have stagnated and mortgage lending criteria have constricted, the outlook for aspiring property buyers seems bleak. JWT London’s survey shows that almost half of those yet to start on the property ladder make a direct link between home ownership and their own self-worth. And while 46 percent of those unable to get onto the property ladder fear for their futures, 48 percent have lost hope that their grandchildren will ever own property in the U.K.
Marie Stafford, Planning Foresight Director at JWT London, explains: “The significance of property in the population’s psyche is somewhat exceptional to the U.K. compared to our neighbours in Europe, where renting is the norm. The divide between the haves and have-nots is getting keener, and nowhere is this felt more strongly than in the property market.”
The full report is available to download at austerityindex.com, along with reports from previous quarters.