Housing Crisis

Britain faces an "unprecedented and escalating" housing crisis, charities warned. Geoff Hawkins, chief executive of the housing charity Chapter 1, said the problem was no longer confined to the stereotype of rough sleepers rehabilitating from lifelong addictions, but now includes victims of recession who do not qualify for appropriate help. A report by the Local Government Ombudsman last week criticised councils across Britain for "consistent failings" in dealing with those at risk of homelessness. "We see too many cases where individuals have suffered injustice at a particularly precarious moment in their lives," Jane Martin, the ombudsman, said. "When councils fail to give them a helping hand at that key moment, it can affect that individual for years."

Leslie Morphy, chief executive of the homeless charity Crisis, said "With unemployment rising, the cost of living increasing and an inevitable rise in interest rates ahead, millions of people are facing a real struggle to keep a roof over their heads."

Around £21 billion of luxury homes are planned by investors and developers in the capital city. More than half are expected to hit the market by 2015. London is a favourite destination of foreign buyers, who are expected to snap up £3.7bn of property this year alone. Prime residential properties last month climbed to new high levels in Chelsea, Mayfair and Kensington, according to estate agents. International buyers are attracted by the weak pound which makes property better value and a sound investment. Political instability in the Middle East and North Africa is also driving buyers to buy homes in London and abroad.