Flats. Locked in, not out.
London flats have lost a quarter of their value in a decade, and the people who bought on Help to Buy are trapped. The old crisis was being locked out. The new one is being locked in.
THE GIST ON FLATS: "Flatlined"
What has happened to London flats?
London flats have lost a quarter of their value in the last decade, and Help to Buy properties are being sold at a loss. There's been no crash, but prices haven't kept up with inflation while everything else got more expensive.
Flats in central London have lost nearly 40% of their real value, and people don't even know. The people who bought them are trapped.
Why did policy make it worse?
Every policy designed to make it better made it worse. It gave people more money to chase the same asset, and every first time buyer entering the market pumped demand into a system that needs new money at the bottom to keep working.
Why is this a national problem?
Because this is Britain's default wealth plan. 60% of household wealth is in property. Now the people who managed to get on the ladder are worse off than the people who couldn't.
Interest rates have doubled, Help to Buy has ended and renting is now cheaper than owning. The people who told their children to buy need their children to keep buying to protect their own wealth. That's a Ponzi scheme with a postcode.
What changes?
It's how the wealth in this country has been built. It's how people retire and how governments get elected. And the generation meant to keep it going aren't any more.
The old crisis was being locked out. The new crisis is being locked in.
Is property still a good home for your savings?
Your take. One tap, then see how everyone else voted.
Quick answers
How much have London flats lost?
A quarter of their value in a decade, and central London flats nearly 40% of their real value.
Why did policy not help?
It gave people more money to chase the same asset, pumping demand into a system that needs new buyers at the bottom.
What share of household wealth is property?
60%, according to Huw.
See you on the next one.
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