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House prices increase twice as quickly as wages in Barnet
In the last ten years house prices in Barnet have risen at more than double the rate at which wages have increased.
According to new figures released by the National Housing Federation, in 2001 the average home in the borough would cost £220,649 and the average wage was £16,624.
In 2011 the average home would set you back £441,233 while the average wage was £23,390.
This means that in the past decade house prices have increased by 100 per cent, while wages have only increased by 41 per cent.
Coucillor Tom Davey, Barnet Council’s cabinet member for housing, said: “Theoretically houses are affordable as people are paying for them.
“The question is, are people happy with the prices?
“Some people obviously are not happy with the current situation but the problem is that if house prices were lower then demand would go up and that, in turn, would push prices up.
“It is a Catch 22 situation.
He added: “This is not something that the council really gets involved with.
“It is a private market governed by supply and demand.”
However, Cllr Davey predicts that the price of cheaper houses in the borough will soon start to level out because of development and regeneration increasing the supply of affordable housing.
He said: “Hopefully the bottom of the market will start to level off.
“As regenerated areas are built on supply will increase, so that part of the market should level out.
“It’s impossible to tell, though, as it may turn out that the new housing attracts more people to the borough meaning that demand increases with supply.
“If that happens then the lower end of the market may not smooth out.
“It is impossible to predict human behaviour.”