How to solve the UK Housing crisis: 6 steps

Published on
April 17, 2024

It’s no secret that the current UK Housing Crisis is a big problem. From soaring service charges to those living on traditionally affordable canal boats, now facing rising fees of up to 75%, it’s clear that people from all backgrounds are affected. 

If the right methods aren’t implemented, future generations will be affected, too. So, to help prevent that, as a property expert platform, we have listed suggested solutions for the government and current and aspiring homeowners on how to solve the UK Housing crisis.

1. Build More Homes For The UK Housing Crisis 

The government has consistently failed to deliver its pledge to build 300,000 new homes in England yearly. In 2023, just 212,570 new homes were built, and 2022 and 2021 also fell short of this annual target. 

So although Michael Gove, the housing secretary, stated in February that they are still committed to building one million homes during this Parliament, the figures suggest otherwise. 

There is a clear demand for more housing in the UK; therefore, the government should prioritise building more homes. More homes mean more options for home buyers, which helps with affordability due to the natural increase in competition for homes. 

2. Stamp Duty Threshold

Stamp duty is a tax you must pay if you buy a property over a certain price in the UK. The stamp duty tax threshold currently stands at £425,000. However, in March 2025, it will reduce to £300,000. This reduction will lower barriers to entry for affordability, as fewer people will be able to pay the stamp duty tax based on this figure.

We suggest the government consider keeping the £425,000 threshold to prevent raising a barrier for people to get on the property ladder.

3. Downsizing

elderly couple in home on sofa

Research by Zoopla revealed that “the majority of homeowners aged 65+ have two or more spare bedrooms.” As an island, the UK is restricted to space compared to other nations like the US. Therefore, introducing an incentive to downsize for pensioners who live in homes larger than they need could aid the UK housing crisis and help growing families have homes that suit their family size.

4. Co-living

Due to mortgage rate increases, more landlords are embracing co-living situations where they rent out a room in their property to help pay off their mortgage.

Sharing your property with a housemate does not have to be a long-term solution. If you pay off your mortgage quickly enough with the monthly rent you receive from them, you could be back to having all your space sooner than you think. 

Co-buying can also help with affordability. Two incomes are always better than one, and it doesn’t necessarily have to be a couple coming together. Friends and family can also join in co-ownership. This is becoming more popular due to rising rates.

According to Halifax, joint first-time buyers account for 63% of mortgage completions. And with the average property values for first-time buyers being around 6.7 times the average UK salary (£43,257), it’s hardly surprising that increasingly more first-time buyers are buying jointly instead of individually.

Co-living and co-buying can also help address the problem of homes with unused rooms by allowing renters or co-owners to share rooms in one property. 

5. Start Small And Evolve Later

Many first-time buyers have a dream home in mind when looking for a house. And we get it; who doesn’t want to live the luxe life in their property?

But it’s also important to note that your first home doesn’t have to be your forever home. You can start small within your budget, save, and eventually move to a bigger and better dream home without breaking the bank.

As a first-time homebuyer in this current housing climate, prioritising savings is the safest option.

6. Financial Education

With the advent of social media, various unqualified people are sharing misinformation online about property. This can lead to people dangerously believing false rhetoric about the UK property market, even deterring people from the homebuying process altogether.

At Brickzwithtipz, we aim to bridge this gap in property education to help guide people on their journey in homeownership. In addition to writing blogs like this on how to solve the UK housing crisis, we create digestible, informative social media content highlighting news and opportunities in the UK property market for beginners and advanced homeowners alike.

Our Founders, Tayo Oguntonade, who has over ten years of experience as a mortgage broker, and Antoinette Oguntonade, an experienced business accountant, have first-hand insights into UK property, making them well-positioned to share this knowledge with others.

The Homebuyers Club is another way they do this. From opportunities to have money added to your deposit to 1:1 calls with property experts, it is an online community with a wealth of knowledge. 

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