This article reflects the challenge of Brexit Britain in a nutshell. The demand for Housing in the South East is the highest, land values are the highest, the rate of return on infrastructure investment is the highest.
If you look at this this through an accountant's lens its a no brainer. In fact the same could be said for all infrastructure - invest in London and South East - and you get your bang for your buck, invest elsewhere and the same returns cannot be guaranteed.
It’s not a binary question - the answer cannot be to stop investing in the south- east or only investing in the south-east. One of the great myths about London is everyone lives in a box flat and if only they moved up North they could buy a mansion. This only applies to those with a good job and high earnings potential. It would never apply to those families living below the poverty line in London or in any way help those struggling to get on the housing ladder or into social rented accommodation elsewhere in the country.
To create a spirt of cooperation and shared sense we are all in this together, we should ditch the spreadsheets and invest the money we have in housing and other infrastructure in all our communities, When you see stats that show GDP nearly nine times higher per head in West London when compared to West Wales, we should know things are not going right and devolve money and tax raising powers now to local communities to spend on their priorities.
Four directly elected mayors have called on the government to review the way in which funding for new housing, including homes for social rent, is allocated to city regions. West Midlands CA mayor Andy Street (Con), Tees Valley CA mayor Ben Houchen (Con), Greater Manchester CA mayor Andy Burnham (Lab), and Liverpool City Region CA mayor Steve Rotheram (Lab) have co-signed a letter to the prime minister saying their areas “should not lose out because our house prices are not as high as in London and the south-east”. This comes after Construction News found three-quarters of a £2bn infrastructure pot in the government’s £3.5bn home building fund has gone to projects in London and the south-east. A spokesperson for Homes England, which manages the fund, said those areas received more funding because that is where “the highest housing demand” is.