Picture this: you’re casually scrolling through Twitter, ready to retweet cat videos and like memes, when suddenly, a house listing stops you in your tracks. “Is this a joke?” you wonder aloud, squinting at the screen. But as reality sinks in, you realise it’s no laughing matter. In the labyrinth of London’s property market, even the idea of owning a home comes with a hefty side of compromise.
Now, let me paint you a picture of the house that brought this dilemma crashing into my feed—a 3-bedroom terraced abode in the nooks of northwest London. Hold your horses, it’s not the kind of charm that takes your breath away; more like a Victorian relic that forgot how to keep up with the times. Windows playing hooky, a front door with a defiant crack running through it—frankly, it could have been the set for a horror movie. The living room? Let’s just say it wasn’t designed for the living. And those “rooms”? They’re so snug, even Harry Potter’s under-the-stairs sanctuary would be considered a palace in comparison.
We are currently facing a pressing housing crisis, presenting a significant moment for politicians to champion the interests of both the current and upcoming generations by taking steps to construct more affordable housing options. Among the demographics most severely affected are individuals aged 18 to 25, young families, and those with limited incomes. Disturbingly, approximately 40% of young adults are unable to afford a suitable home within their own hometowns. This issue is compounded by stagnant wages, with the average earnings for individuals aged 25 to 34 growing by a mere 19% over the course of more than two decades. In stark contrast, housing prices have soared from an average of £93,623 to £276,759 during the same period. While wages across the country have risen modestly from £18,848 to just £25,971.
For instance, envision a first-time homebuyer in London attempting to step onto the property ladder—an undertaking that would necessitate a staggering £144,500 saved solely for the initial down payment. A comparable scenario in the East and West Midlands still commands an average of £45,600. Even if young individuals were to significantly curtail discretionary expenses, abstain from indulgent coffee purchases (which they genuinely do), and exhibit fiscal restraint while meeting rental obligations, they would find themselves well into their 30s before achieving the financial capacity to establish a place to call their own.
While it is encouraging to observe politicians from all sides acknowledging the crisis, it remains lamentable that insufficient action is being taken. Promised initiatives often fail to materialise, and politicians’ declarations frequently diverge from their actions—some even campaign in local by-elections with pledges to impede area development. A spectrum spanning from a solitary tree to an entire colony of birds can be exploited as a pretext to delay proposals for progress. Constructing homes within Britain has evolved into a challenge that seemingly surpasses the capabilities of politicians, yet they are precisely the figures we turn to for much-needed transformation.
In 2021, the Conservative Party set an ambitious goal of constructing 300,000 new homes. However, by December 2022, Michael Gove had recanted these targets, deeming them “advisory” rather than obligatory. While criticism could be directed at Michael Gove for succumbing to the pressures of backbench MPs, it’s worth noting that he is a capable minister who adeptly navigates avenues for achieving results. A new comprehensive housing plan, unveiled in July, entails proposals to relax planning regulations, thereby alleviating constraints on home extensions, loft conversions, and building renovations. This leniency also extends to conversions of spaces like bars, warehouses, and agricultural structures.
To surmount the challenges posed by the housing crisis, political alignment is essential to avert further complications. Keir Starmer, leader of the Labour Party, has announced his intent to reinstate the government’s target of 300,000 new homes, should the Labour Party take power. Additionally, he aims to update legislation to empower local authorities with greater influence over developments in their respective regions.
As I mentioned earlier, it is commendable that major political parties acknowledge the problem and endeavour to tackle it, it’s important to assess what concrete provisions they offer to prospective first-time homebuyers. Although Rishi Sunak’s extension of the Help to Buy scheme appears promising on paper, there is a lurking risk of further inflating property prices. Despite Boris Johnson’s commitment to the scheme’s extension, its implementation is still pending. Keir Starmer, on the other hand, proposes an alternative approach involving stamp duty surcharges for foreign investors and the introduction of a mortgage guarantee scheme for first-time buyers.
The housing predicament can also be attributed to the Town and Country Planning Act, which effectively nationalised the authority to develop land. Prior to its enactment in 1947, landowners enjoyed considerable autonomy, whereas the legislation granted local councils greater jurisdiction over permissible developments. Regrettably, the UK’s planning system does not effectively cater to the needs of a modern generation demanding rapid and substantial home construction. According to the Centre for Cities, these inefficiencies in planning laws have resulted in a shortfall of 4.3 million new homes over a span of 70 years.
In England and Wales alone, housebuilding plummeted by a third following the law’s enactment, causing us to lag significantly behind our European counterparts in housing construction. England boasts a mere 434 dwellings per 1,000 people, while France boasts 590, as per data from the OECD. In France, around 8% of dwellings remain vacant at any given time, whereas in England, this rate barely touches 1%.
To put it succinctly, the crux of the matter is our failure to construct homes at a sufficient pace. Politicians frequently overpromise and underdeliver, utilising reasons ranging from stalling shopping centre, train station, and car park developments. While Michael Gove and the government do make efforts, there is a pressing need for more comprehensive action to address the housing predicament.
With slightly over a year remaining until the next General Election, and with the economy gradually rebounding and inflation subsiding, it is imperative that housing be positioned among the top three priorities for the Prime Minister. This issue should be at the forefront of our campaign and pursued with a clear timeline and well-defined targets. While optimism may surround Rishi Sunak’s pragmatic approach and capacity to effect change, it is the collective alignment of MPs within his own party and across the political spectrum that will ultimately determine the viability of our endeavours.
