Estimates suggest that the current housing crisis gap will not be closed until 2035, based on the current speed of new build completions.
The BBC has produced a briefing paper on the state of the housing sector, claiming that the current crisis is set to take 15 years to solve, and that is if the constructions sector is able to replicate or better recent building figures.
The BBC cited 2019 studies on the English housing sector to speculate that the entire UK is suffering from a housing gap of around 1.2 million homes. This figure, the broadcaster claims, is the number of new homes needed to ensure all citizens live in ‘decent’ accommodation built to acceptable standards.
Additionally, based on the current population trends and housing completions speeds, estimates suggest that 4 million extra homes are required by 2035.
Over the past two years around 500,000 new homes have been built. In 2017/18, developers completed 275,000 new homes across the UK.
However, recent Brexit and political uncertainty reduced confidence in property and slowed down new build starts over the year. Recent ‘Housing Delivery Targets 2019’ indicate that new build completions exceeded local authority targets but slipped to 236,914 new homes last year.
Added confusion over the construction sector’s ability to employee skilled building workers could impede short term progress, but the briefing paper claims that 2035 is the most realistic date the UK would be able to close the gap.
The BBC claim that the problems are deeper than a simple need to build more homes. The UK’s social housing strategies and ways to tackle the homelessness crisis are also seen to be attributing to the problem.
The research highlighted the fact that 140,000 families or 320,000 people, of which 210,000 were children, were classed as homeless last year. Many of whom were forced into temporary accommodation with no signs of a permanent dwelling in sight.
The issues of affordability are also imprisoning many. The figures indicated that the majority of young people are unable to save for a deposit based on the current cost of renting a home with a third of those born between 1980 and 2000 set to be renting beyond retirement.
Another cohort of millennials are unable to even rent a property in the current climate, trapped living with older loved ones. Around half a million more 20-25-year-olds are living with loved ones compared with figures from 1996.
Whilst it is easy to blame the government for failing to reduce the housing gap, it is clear they have been implementing measures to confront the crisis.
The government are committed to building a million houses by the end of their current tenure which will mean an average of 200,000 new homes per year. Myriad schemes have also been launched to tackle homelessness whilst the Help to Buy and future First Home schemes are ensuring rocketing housing prices are not outpricing young prospective homeowners. Land is also being released. In the past decade, the various governments have approved nine in ten developments or land for 2,564,600 residential units whilst only 1,530,680 units have been built.
Do you think the housing crisis will be solved by 2035? What initiatives do you think would help solve the issues in the sector?
