It has recently been reported that the affordable home crisis in Ireland has reached breaking point. Some have even speculated that it’s ‘the social issue of our time’ but the sad reality is that the lack of affordable homes isn’t just affecting Ireland; it’s a widespread issue throughout the UK.

What has caused such a crisis?

Recent reports on the UK government’s housing plan between 2015-2020 suggest that almost every target set has been missed thus far, leading some to believe that “by 2020 homeownership will be an 'impossible dream' for those not already on the ladder”. It has been estimated that the need for housing in England alone is currently two to three times higher than  the current supply.

It is thought that the current ‘dysfunctional’ housing market is a direct result of local governments stepping away from the building of new houses, leaving the responsibility in the hands of not-for-profit organisations, which are struggling to provide thanks to a reduction of the capital subsidy.

What is needed?

The country is in need of 200,000 to 300,000 new properties - a margin not seen since the 1970s - which presents a demand for property developers to step in, though some doubt whether building more homes will provide a solution. Property developers face a challenge due to constraints in the planning system, as well as a shortage of available land. Many areas employ strong policies to protect green spaces, which have been highly effective in preventing urban sprawl and, in light of other social challenges, such as climate change and food security, it seems impossible to find a one-size-fits-all solution.

Can the crisis be solved?

However, a solution must come. London Mayor Sadiq Khan is looking to increase the supply of lower-cost homes and has assured property developers that private development proposals that have at least 35% affordable units will be fast tracked through the process by the capital’s council. Whether this scheme will prove effective, or be adopted by other councils throughout the UK is still very much up for debate, but the effects on property developers would be both positive and negative. For developers willing to offer affordable housing, it looks like their schemes will be more strongly favoured by councils, but with some developers unwilling or unable to offer such proposals, it’s clear a compromise will have to be reached somewhere along the line. 

Theresa May has already expressed that it is her personal mission to ‘fix’ the current housing shortage in the UK, which is impeding on young people desperately trying to get on the property ladder.

She’s placed the production of housing at the forefront of the national agenda and will rewrite planning laws, as well as forcing private housebuilders to pull their weight and do what is necessary for Britain.

Tens of thousands of more homes are needed to keep up with the current levels of demand and there are fears that if the right steps aren’t taken, Britain will turn into a ‘rootless generation’, with people that never stay in one place for any significant length of time.

The crisis has caused much debate, with many politicians and architects stepping forward to share their thoughts about what is needed to address the housing shortage in the UK.

Just last week architect Patrik Schumacher expressed his opinions regarding affordable housing for millennials, stating that while properties still need be centrally located in cities such as London, they should be significantly smaller.

Generation rent is already struggling with crowded shared accommodation and the rising cost of renting, should the sacrifices being made go even further?

The number of people that own their own home has dropped significantly over the past 35 years and this can mainly be attributed to higher housing prices and lower earnings thanks to an increasingly strained economy. Most people in their 20s now spend almost two-fifths of their salary on rent, an eye-watering figure to say the least.

It’s interesting to consider the situation in London though, where zoning restrictions are meaning that wealth is being redistributed to homeowners and landowners.

Would an increase in the options that are available to renters, including more opportunities for co-living and smaller units open up the market and provide those that want it with the choices that they need?

We’ve already seen the introduction of micro-homes, minuscule flats barely bigger than the average bedroom but intended for two people to live in.

Perhaps these ever-shrinking properties say something about the values of working professionals, who prefer spending more time at work and enjoy evenings schmoozing in trendy central locations.

For some, smaller flats are probably fine, but for others, less room is certainly going to cramp their style.

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