Is home ownership out of reach for young Britons? | The Economist
- 5 years ago
Britain's housing crisis. Rocketing prices and limited construction are putting home ownership out of reach for many young Britons. As the election nears, few politicians have a realistic solution
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Thirty-three-year-old Lucia Hull lives in Ealing, West London, with her husband and two children. She also lives with her parents in the same house she grew up in - which she left 15 years ago to make a life for herself. But like a growing number of young people she soon realized that setting up a home wouldn't be as easy as she thought.
Lucia and her husband Connor used to live in Edinburgh but last year decided to move to London to be near Lucia's parents because childcare costs for their two young daughters were becoming unmanageable. Despite working full-time and earning average wages for West London, they would have to spend over half their joint income on rent if they were to live close enough to Lucia's parents to take advantage of their help. If the Hull's wanted to buy, the mortgage from both their salaries wouldn't even get them a two-bedroom flat.
The Hulls are not alone in their predicament. Britain is facing a housing crisis. It's not a new problem. The years since 2010 have marked the lowest five-year period of construction since the end of the Second World War. It's estimated at least 250,000 houses need to be built every year in England to keep up with population and household growth. In 2014, less than half that number were built. That's down to a combination of NIMBYism, outdated planning regulations, and a lack of political will. More housing is urgently needed to bring down costs and give Britain's growing population somewhere to live. Despite this, housing and how to build more of it remains a political hot potato. None of Britain's main parties seems to have a realistic plan for fixing it.
The Conservatives have said that if they're reelected they'll build 200,000 low priced starter homes by 2020 - these will be available to 20% discount to first-time buyers under 40 and the prices will be capped at £450,000 in London and £250,000 elsewhere.
Labour's promise is even more ambitious. They've said they'll build 200,000 homes per year by 2020. This worries people like Tom Papworth who think that neither party's plans will deliver the number of houses Britain so desperately needs.
One solution to Britain's housing crisis would be to build more houses in places like Iver. Iver is just 22 minutes from London by train. The government's new Crossrail project will soon shorten that journey further, making Iver the ideal commuter town. Currently only 11,000 people live in Iver and further building is largely prohibited because so much of the area falls within the Greenbelt.
The Greenbelt was a policy instituted shortly after the Second World War to protect large swathes of land around English major cities from further development. The idea was to safeguard agricultural land so the country could feed itself, and to encourage the regeneration of inner-cities following extensive bombing and the spread of slum housing. The Greenbelt is an area and an issue that many Britons feel strongly about.
If the classifications were redrawn, new housing could be created with no damage to the beautiful and valuable natural areas within the Greenbelt. If the solution is so straightforward, what's the problem? As so often it comes down to politics. The issue is politically toxic and few politicians are willing to touch it - particularly during an election.
Lucia and her young family must now choose between opportunities in the city or affordable housing elsewhere. For now, the Hull's have little choice but to stay with her parents - but is not a permanent solution and as the children grow they'll need more space. Feeling trapped, the couple have considered moving to Northern Ireland where Connors family lives because the prices are more manageable.
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Thirty-three-year-old Lucia Hull lives in Ealing, West London, with her husband and two children. She also lives with her parents in the same house she grew up in - which she left 15 years ago to make a life for herself. But like a growing number of young people she soon realized that setting up a home wouldn't be as easy as she thought.
Lucia and her husband Connor used to live in Edinburgh but last year decided to move to London to be near Lucia's parents because childcare costs for their two young daughters were becoming unmanageable. Despite working full-time and earning average wages for West London, they would have to spend over half their joint income on rent if they were to live close enough to Lucia's parents to take advantage of their help. If the Hull's wanted to buy, the mortgage from both their salaries wouldn't even get them a two-bedroom flat.
The Hulls are not alone in their predicament. Britain is facing a housing crisis. It's not a new problem. The years since 2010 have marked the lowest five-year period of construction since the end of the Second World War. It's estimated at least 250,000 houses need to be built every year in England to keep up with population and household growth. In 2014, less than half that number were built. That's down to a combination of NIMBYism, outdated planning regulations, and a lack of political will. More housing is urgently needed to bring down costs and give Britain's growing population somewhere to live. Despite this, housing and how to build more of it remains a political hot potato. None of Britain's main parties seems to have a realistic plan for fixing it.
The Conservatives have said that if they're reelected they'll build 200,000 low priced starter homes by 2020 - these will be available to 20% discount to first-time buyers under 40 and the prices will be capped at £450,000 in London and £250,000 elsewhere.
Labour's promise is even more ambitious. They've said they'll build 200,000 homes per year by 2020. This worries people like Tom Papworth who think that neither party's plans will deliver the number of houses Britain so desperately needs.
One solution to Britain's housing crisis would be to build more houses in places like Iver. Iver is just 22 minutes from London by train. The government's new Crossrail project will soon shorten that journey further, making Iver the ideal commuter town. Currently only 11,000 people live in Iver and further building is largely prohibited because so much of the area falls within the Greenbelt.
The Greenbelt was a policy instituted shortly after the Second World War to protect large swathes of land around English major cities from further development. The idea was to safeguard agricultural land so the country could feed itself, and to encourage the regeneration of inner-cities following extensive bombing and the spread of slum housing. The Greenbelt is an area and an issue that many Britons feel strongly about.
If the classifications were redrawn, new housing could be created with no damage to the beautiful and valuable natural areas within the Greenbelt. If the solution is so straightforward, what's the problem? As so often it comes down to politics. The issue is politically toxic and few politicians are willing to touch it - particularly during an election.
Lucia and her young family must now choose between opportunities in the city or affordable housing elsewhere. For now, the Hull's have little choice but to stay with her parents - but is not a permanent solution and as the children grow they'll need more space. Feeling trapped, the couple have considered moving to Northern Ireland where Connors family lives because the prices are more manageable.
Daily Watch: mind-stretching short films throughout the working week.
For more from Economist Films visit: http://econ.st/2F6DWQL
Check out The Economist’s full video catalogue: http://econ.st/20IehQk
Like The Economist on Facebook: http://econ.st/2F7ejiJ
Follow The Economist on Twitter: http://econ.st/2F6SsIo
Follow us on Instagram: http://econ.st/2F9Xsfc
Follow us on Medium: http://econ.st/2F9NWck