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Book of the week: How we got into a mess over housing
Book review: Big Capital: Who is London For? Anna Minton investigates the causes of the London housing crisis.
by Anna MintonPublished by Penguin, £8.99(Buy at Amazon)
The causes of the housing crisis in London, especially at the lower end of the scale, are much debated. Minton, a journalistand academic, argues that the combination of a lack of investmentin council housing and effortsby developers to restrict housing supply have pushed up prices. These rising prices, combined with funding cuts, have in turn pushed councils, with the encouragement of central government, to evict residents from social housing and to demolish the property so the land can be freed up for luxury flats, with only a smattering of affordable housing.
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Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.
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Minton warns that this processrisks turning London into Paris,where those on low incomes havebeen pushed out of the centre intothe banlieues, the notorious pockets of deprivation on the outskirts of the city. The policy of relying on the private rented sector to fill the gap created by the demise of social housing is also causing slums tore-emerge in the form of unlicensed and sub-standard accommodation. Council attempts to stop the worst excesses are hindered by government opposition to regulation.
The housing crisis is a familiar story, but Big Capital is a powerfully written account with plenty of case studies and it's hard not to come away with a fresh sense of outrage. Minton also makes some interesting suggestions about how to address the problem, such as new taxes, or the idea of social housing co-operatives. However, she admits that only a housing market crash is likely to restore prices to saner levels though such a correction will create its own problems.
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