Getting by in 70s London

London was more affordable relative to income in the 1970s than it is now, although personal finances often felt unstable because of double-digit inflation. A typical salary might be around £4,750 ($9,660) per year, an amount which comfortably covered the cost of everyday living. The salaries of public sector professional workers were, in effect, inflation adjusted because of strong union negotiators. The unions had also negotiated a ‘London weighting’ to be added to salaries to compensate for London’s higher cost of living. The National and Local Government Officers’ Association (NALGO) was a major union representing white-collar workers in local government.

This was a period when local governments were purchasing private residential properties on a large scale to expand the stock of social housing, a policy supported by councils under both Labour and Conservative governments. The result was that, while affordable accommodation was in painfully short supply, it was easier to find in London in the ‘70s than today.

During this time, the UK social housing system allowed both working-class families and professionals to rent council properties. In 1980, Margaret Thatcher changed the housing landscape dramatically. The Conservative government gave people the right to buy their council houses, tempting them with significant subsidies. Because up to a third of all British housing was state-owned, prior to her reform availability was not strictly limited to the destitute. Her idea was that more people would own their own homes, leaving social housing for those who could not afford to buy.

The consequences of this policy have been catastrophic. Many of the purchased properties are being rented out. Twice as many people in London now rent than 15 years ago. The stock of social housing has decreased significantly. The numbers of unhoused people and people living in unfit accommodation in London has increased.