_5 ways to solve the housing crisis

Once again, the UK’s housing sector is sat in the eye of the storm. The revolving door at the Ministry for Housing has witnessed 21 Housing Ministers in 25 years. Is it any wonder that there has been no coherent strategy for housing?

This is having serious consequences. Not enough homes are being built, with affordability being the most acute crisis faced. The problem has been compounded by interest rate hikes, labour shortages, volatile material costs, and economic headwinds, as well as an overburdened and under-resourced planning system.

It is becoming extremely difficult to get onto the housing ladder, and, as a result, more people are either renting for longer or living with parents later in life. For those lucky enough to be homeowners, unpredictable mortgage costs are creating affordability pressures which make it difficult to move up the ladder. Families with children are finding it challenging to upsize. Meanwhile, seniors are not incentivised to downsize, often occupying large family homes with bedrooms to spare. On top of this, social housing waiting lists are at an all-time high.

Despite national delivery targets, the closest we have ever come to delivering 300,000 homes per annum was a sharp spike of 243,000 in 2019-20. It's clear current housing policy isn’t working effectively. What can be done?

Housing delivery will be a key battleground issue in the run-up to the next election – and herein lies the problem. Making housing political inevitably creates short-termism.

Take, for example, the recently announced planning reforms, designed to fast-track the conversion of barns, offices, industrial buildings, and retail premises into residential accommodation. Aside from there only being a finite capacity of premises that would be eligible for conversion, the policy simply won’t deliver at scale. It may create hundreds of new homes, but not the thousands needed to solve the UK’s housing crisis. It is tinkering at the edges of the problem.

With a general election less than 18 months away, we strongly urge the next elected government to heed our industry’s advice and enact a long-term investment plan that is brave and bold in vision but isolated from political whim.

1). Urgently develop a coherent national strategy for housing that considers national and regional targets for delivery. An approach that effectively combines both rural and urban development may not be politically popular but is essential. A national strategy would ease the political paralysis that is preventing local authorities setting robust local plans.

2). Address the land supply, quickly. Commit to a robust review of greenbelt land and redefine its modern-day significance. This may mean simultaneously carving out patches of low-grade ‘greenfield’ land for development and investing in improving the quality of other areas. Land supply must also consider the different types of housing needed to address an ageing population, affordable housing supply and key worker accommodation.

3). Resource the planning system properly with investment, education and technology, and remove the short-term mindset created by political influence. Planning decisions, which should be delivered in three to four months, can now take up to 18 months or more. This is an unacceptable level of risk and uncertainty for housebuilders, which is significantly curtailing delivery.

4). Engage with industry leaders effectively. We have a wealth of knowledge, are close to the market issues, and want to engage. Use us as a sounding board to predict consequences, rather than tinkering with policy and effecting market distortion.

5). Tackle the fear of local planning applications. The ‘not in my backyard’ mindset thrives on the fear that development will devalue communities. This does not have to be the case. Designed properly with a ‘quality first’ approach, new development can significantly enrich places and communities.

If the next government can create a national strategy that supports housing delivery, make more land available to stimulate house building, overhaul the over-burdened and under-resourced planning system and conquer Nimbyism, we may have some hope of fixing the housing crisis.

How can we help?

If you'd like to discuss your property needs, please reach out to Stuart Baillie.