A report released by the Office for National Statistics (ONS) this week has confirmed what we’ve been hearing for months now: housing is the most lucrative market for online advertising.
As of December, ad spend in the UK’s housing market accounted for £13.8bn in advertising revenue, up from £11.6bn in 2017.
That means that in 2017 the average UK household spent £20,000 on adverts.
This compares with £16,000 in the year before, which was the peak year of the boom in ad spend, when ad spending peaked at £28.9bn.
The biggest ad spenders, however, were in London, where the average household spent almost £25,000.
The average UK households spending £28,000 per annum in the housing market in 2017 was just shy of the record set in 2015, when the UK spent £34,000, according to the ONS.
This increase in ad spending in London over the past year has been driven by the fact that, since 2016, there has been a strong correlation between price increases and increased housing prices.
The ONS report also found that the average price increase in London has been nearly double that of the UK as a whole.
The increase in housing prices in the capital was caused by the UK Government’s decision to introduce the Capital Gains Tax (CGT), which will see the highest rate of tax on homes in the country rise from 45 per cent to 50 per cent.
This means that landlords are paying a higher rate of corporation tax on the sale of properties, a tax that, according the ONSB, is a “significant contributor to housing prices”.
Advertising and property prices have been rising in the past few years, as the number of properties in the city of London has risen from about 10 million in 2016 to more than 40 million today.
However, the ONs report did note that the increase in property prices in London was also driven by a “rising proportion of UK households being in the lowest income bracket, the highest proportion of households with less than £30,000 of assets and the highest levels of house ownership among those households”.
Ads that target households with the lowest incomes have also increased in recent years, with the proportion of people earning below the poverty line (less than £10,000) increasing from about 15 per cent in 2015 to nearly 20 per cent today.
Advertising in the social housing market is an increasingly popular form of online advertising, with AdSense, Adblock Plus and others seeing significant growth in advertising spend.
However the ONSP said that despite the growth in ad prices, the UK is still in the midst of a housing crisis.
The ONS says that the number one reason for the housing crisis is the increase of social housing stock in the building industry.
This has meant that the shortage of affordable, quality, well-paid, socially responsible housing stock has created pressures for social housing tenants to find alternative accommodation.
The Government recently announced that the introduction of the CGT will mean that social housing will be required to make a 50 per-cent reduction in the amount of social stock.
This would mean that over the course of the next 10 years, the amount available for social stock would be reduced by 50 per half.
This has caused anxiety in some social housing users and has meant they are turning to alternative accommodation, such as Airbnb and other online platforms.
However this is only the tip of the iceberg.
As a result of the changes to the capital’s property market, there is a growing amount of housing stock that will be unable to be sold for sale, meaning that housing in London and elsewhere in the Capital will become even more unaffordable for many people.
In 2018, the average number of social shares per household was 1,200, which is the lowest in the United Kingdom since the year 2000, according a report by Shelter.