London will struggle to rebuild from the pandemic unless more affordable housing is built, insurers Legal & General have warned today.
The L&G Rebuilding Britain Index show housing is the poorest performing measure – behind jobs and economic prosperity – with affordable housing falling flat in London and the South East and West of England.
Nigel Wilson, CEO at Legal & General, said the findings came as “no surprise” despite positive GDP growth over recent months.
House prices remain 8.9 per cent up on 2020 and house building remains depressed, according to the Land Registry, leading to an imbalance between supply and demand.
Wilson said: “It is clear that the longer we wait in bringing forward further major schemes, the greater the risk of existing inequalities between and within our communities deepening further.
“As we begin the long road to recovery, it is up to all businesses and government to step up and invest in the growth opportunities. As the economy continues to unlock, so will our ability to start to act on these opportunities.”
Data from L&G suggest people are remaining economically cautious as the UK eases out of the Covid-19 pandemic and more time is needed to feel the impacts of investments and major schemes; but only a quarter of the UK population say local investment is making a noticeable impact where it is most needed and highlight the need for developments to scale and speed up.
The Government has made so-called “levelling up” a key plank of the UK’s economic recovery.