The availability and quality of housing has a significant impact on people's lives, affecting choices of work and transport needs, as well as the quality of life. With rates of household formation continuing to increase, housing demand stimulated by the buy-to-let market, and housing supply remaining largely static, there are significant shortages of suitable housing in areas of population pressure. This is reflected in property prices, where in London, according to building society Nationwide's indices, prices increased 149 between 1995 and 2002. The steep increase in house prices have hit non-homeowners hardest, and a growing proportion of the population is being priced out of the market At the same time, along with overall output, the production of affordable housing has fallen, with fewer than 20,000 units completed in 2002, required to address a total housing need backlog of 450,000 households.
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