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English Housing is Most Expensive in the Developed World

The Home Builders Federation (HBF), a significant voice for private housebuilders, recently unveiled some concerning figures. They suggest that when it comes to vacant homes per person, England trails behind every other country in the Organisation for Economic Co-operation and Development (OECD). This international body comprises 38 countries, including EU nations, the US, Japan, and Australia.

Such a comparison, timed ahead of the Labour party conference, amplifies the housing industry’s call for more relaxed planning restrictions, hoping this could spur more rapid construction.

The Financial Strain on Renters

For many, the dream of homeownership is taking a back seat, with renting becoming a long-term reality. However, this isn’t without its challenges. Approximately a quarter of private renters in the UK are shouldering heavy housing costs, dedicating over 40% of their income to it. This proportion is stark when compared to France (9%) or Germany (5%).

Labour’s Approach to Addressing the Issue

Labour has voiced the possibility of freeing up greenbelt areas for construction, particularly if they are in a state of neglect. The party also emphasizes a focus on social and affordable housing as central to their housebuilding revival strategy.

The Housing Industry’s Perspective

Stewart Baseley, HBF’s executive chair, underscored the urgency of the situation, calling the recent findings a “wake-up call.” There’s a sentiment among builders and developers that the planning system’s restrictions, coupled with political considerations, are stalling the potential for growth in housing.

For context, the UK has seen the fewest homes built since 1980 compared to countries like Spain, France, Portugal, and even Bulgaria and Hungary.

The Renters’ Viewpoint

While housebuilders call for more construction, renters have their own concerns. They warn that merely increasing the number of high-priced houses won’t make housing any more affordable. Renters are advocating for more council houses, stringent actions against unscrupulous landlords, and the imposition of rent controls.

The Government’s Stance and Future Directions

Recent comments from Michael Gove, the housing secretary, suggest the government isn’t keen on widespread green belt construction. Instead, there’s a push for building within towns, cities, and on brownfield lands.

However, the pressure is mounting from multiple directions. The loss of the 2021 Chesham and Amersham byelection, following a debate on housing targets, further intensified the debate on countryside construction.


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