The UK’s housing situation has been labeled as offering the “worst value for money,” according to analysis from a leading thinktank. Despite the high costs, British homes are characterised as “expensive, cramped, and ageing,” with households receiving less value in return for their investments. This report underscores a crisis in the UK housing market, spotlighting the pressing need for reform.
A Closer Look at the Crisis
The Resolution Foundation’s latest findings draw on data from the Organisation for Economic Co-operation and Development (OECD) to benchmark the UK’s housing woes against those of other similar economies. The results are stark: UK households are faced with not just higher costs but also inferior living conditions when compared to their international counterparts.
Space and Age, The Twin Issues
One of the most glaring disparities highlighted is the average floor space available per person. In England, this figure stands at a mere 38 square metres, significantly less than that in the US (66 sq metres), Germany (46 sq metres), France (43 sq metres), and even Japan (40 sq metres). This lack of space is a clear indicator of the “quantity and quality” issues plaguing UK homes.
Moreover, the UK’s housing stock is notably aged, with 38% of homes built before 1946. This compares unfavourably with countries like Italy and Spain, where only 21% and 11% of homes, respectively, hail from the same period. Older homes often suffer from poor insulation, leading to increased energy bills and a greater risk of damp, exacerbating the cost of living crisis for many.
The High Cost of Living
When examining the cost of housing across different countries, the report employs a unique approach by estimating what it would cost to rent all homes at market rates. This method reveals a troubling scenario: UK households would need to allocate 22% of their spending to housing services, a figure that towers over the OECD average of 17% and ranks highest among developed economies, with Finland being the sole exception.
Calls for Change
Adam Corlett, a principal economist at the Resolution Foundation, emphasises that the UK’s housing crisis is a pivotal issue likely to dominate the upcoming election campaign, “Britain’s housing crisis is likely to be a big topic in the election campaign, as parties debate how to address the problems of high costs, poor quality and low security that face so many households. Britain is one of many countries apparently in the midst of a housing crisis, and it can be difficult to separate rhetoric from reality. But by looking at housing costs, floor space and wider issues of quality, we find that the UK’s expensive, cramped and ageing housing stock offers the worst value for money of any advanced economy. Britain’s housing crisis is decades in the making, with successive governments failing to build enough new homes and modernise our existing stock. That now has to change.”
Government Response
In response to the growing concern, a spokesperson for the Department for Levelling Up, Housing and Communities asserts that housebuilding remains a government priority. Despite global economic hurdles, the government is reportedly on track to fulfill its commitment to deliver one million homes within the current parliament. Efforts are also being made to improve the planning system and enhance the quality of housing, with significant reductions in non-decent homes since 2010.
Furthermore, legislative advancements such as the renters reform bill aim to provide tenants with greater security. Investments in affordable housing programs and local authority housing funds are part of the government’s strategy to address the crisis by facilitating the development of affordable and social housing.