Brits will be 'priced out of housing for years'
Problems relating to the affordability of housing for young people are likely to continue for years, according to a new report. The Public Accounts Committee said that the government doesn't currently have the ambition to address the need for affordable housing.
According to to the committee's report, England's housebuilding numbers have fallen well below targets for decades, meaning there is a long-running shortfall in the number of houses that are available. In turn, this creates barriers for those looking to get onto the housing market, as prices get pushed up.
In order to address this, the Department for Communities and Local Government has put in place a target that could see one million homes constructed over the next five years. However, it has admitted that England's housing market is "broken" but has not made steps to improve the market, which is dominated by a select few private developers and could cause issues with meeting this target.
If the one million homes are completed, there will still be a long way to go to meet current demand, which the Department has also admitted. This means that issues relating to availability and affordability are likely to remain for several years beyond this five-year period.
A spokesperson from the Department said: “The Housing White Paper published in February includes measures to deliver more homes. On top of this, 112,338 households have used the Help to Buy: Equity Loan scheme since its launch.
“The Autumn Statement also included an extra £1.4 billion for affordable housebuilding, taking the total to over £7 billion to deliver more than 200,000 homes. And £550 million has already been allocated to tackle homelessness and rough sleeping, with a focus on prevention.”
The high demand for housing is positive for landlords, as there is a better chance that properties will not remain empty for long. However, they can benefit further by encouraging longer tenancies, which can further reduce the loss of rent and ensure that tenants take better care of residences.