Boris defends Londoners in Spending Review

Mr Johnson believes that the way forward is to create more affordable housing both to rent and buy, in order to avoid exacerbating the current financial situation. Rather than decreasing the value of homes already on the market, he feels the government should focus on supplying homes of a lower value.

Boris accused the government of trying to 'wean' homeowners off house-price inflation. He argued that there would be a big decrease in confidence - “The sad truth is that it is still psychologically essential to the British middle classes to have a sense that our principal asset is gently appreciating in value or at least it will over the long term”.

He added: "The best way to help those millions in search of an affordable home is not to try vainly to ensure that the present stock of housing becomes more affordable - ie falls in value - but to increase the supply of affordable homes."

Mr Johnson believes that rather than helping economic recovery, this housing plan would hamper it, citing "if the housing market tanks, then the financial system tanks too."

However, although Boris' stance is well-intentioned, there are many who say he's got it wrong. The Telegraph argues that each 'affordable home' costs on average £45,000. To build 1 million of these homes is hardly an investment that the UK can afford.

Neil O'Brien, Director of Policy Exchange, responded to Boris' defense of inflation. He rejected Boris' theory that house-price inflation would support the recovery, instead arguing "making housing more expensive simply means less to spend on everything else."

Stephen Ludlow talks about ludlowthompson's efforts to allay home-owner worries:
"At ludlowthompson we understand that property is usually the largest asset most of us will own. Yet, unlike tracking the performance of other investments, most home-owners only find out the true market worth of their home once they decide to sell or let. At ludlowthompson we run a Valuation Update Club, a free service that offers a bi-annual valuation of your property."

Suzanne Gray, our director of Sales, adds to this, "ludlowthompson builds lifelong relationships with property owners regardless of a property transaction taking place. If a home-owner is worried about how the new housing reforms will affect their house price, signing up to the Valuation Update Club is a really good way to keep an eye on your investment and to ensure peace of mind".

For more information about the Valuation Update Club, contact your local ludlowthompson estate agency office, or click the links below.