UK Household Housing Crisis: Paying More for Less Value – Resolution Foundation Report

The Resolution Foundation has released a new report highlighting the challenges faced by UK households when it comes to housing. According to the report, UK households are paying more than their counterparts in other similar economies, but are receiving a lower quality and quantity of housing in return.

The report compared UK housing issues with other countries using OECD data. It found that homes in England have less average floorspace per person compared to countries like the United States, Germany, France, and Japan. Additionally, a significant portion of the UK’s housing stock is old, with 38% of homes built before 1946, leading to issues such as poor insulation, higher energy bills, and damp.

The report also looked at the cost of renting all homes in the UK at market rates and found that UK households would have to devote 22% of their spending to housing services, higher than the OECD average. This makes the UK’s housing market one of the most expensive and least value for money among developed economies.

Adam Corlett, principal economist at the Resolution Foundation, emphasized the need for political parties to address the housing crisis in the upcoming election campaign. He stated that successive governments have failed to build enough new homes and modernize existing stock, leading to the current crisis.

In response to the report, a spokesperson from the Department for Levelling Up, Housing and Communities highlighted the government’s commitment to housebuilding and improving housing quality. They mentioned ongoing initiatives like the Renters Reform Bill and investments in affordable and social housing to address the housing crisis.

The report serves as a wake-up call for policymakers and the government to take urgent action to address the UK’s housing crisis and provide better quality and affordable housing for all households.