by Andy Hull
England is a rich country that is failing to properly house its people.
The root of the problem is that demand for housing massively outstrips supply: we are now building around 100,000 new homes a year – the lowest level for a century – when we need to be building at least twice that number. If we continue at this rate, by 2025 unmet housing demand will be greater than the housing capacity of Birmingham, Liverpool and Newcastle combined.
As a result, home ownership has become an unaffordable aspiration for too many, with house prices having tripled in a decade, while wages were left to stagnate. Unless first-time buyers have access to the ‘bank of mum and dad’, raising the deposit required to buy a home is now a real barrier, compounding inter-generational inequality. Meanwhile, social housing – a scarce resource rationed on the basis solely of need – is being residualised to the point that it houses only the poorest and most vulnerable. So, the ‘squeezed middle’, including a young ‘generation rent’, is being funnelled into a poorly regulated private rented sector that remains a tenure of resort rather than choice.