A Comprehensive Analysis of Housing Issues and Affordability in the UK

This report provides an in-depth analysis of the housing crisis in the UK, focusing on the issues of affordability and its impact on the population. It begins with an introduction to the economic instability and its effect on housing ownership, particularly for the younger generation. The report then explores the background of the issue, highlighting the high housing prices compared to average incomes, and the specific challenges faced in cities like London, Oxford, and Winchester. It delves into the consequences of the crisis, including the difficulties of home ownership, expensive housing costs, the rise in rental housing, and increasing levels of homelessness. The report references various studies and articles to support its findings. It concludes by summarizing the severity of the crisis and proposes solutions such as the construction of more houses in new towns as a potential government strategy to provide affordable housing options. The report emphasizes the need for government intervention to address the housing affordability issues in the UK.

Running head: HOUSING ISSUES IN UK
Housing Issues and Lack of Affordability
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Executive summary
The paper studies the housing crisis in UK. It educates its readers on the different consequences
that it produces to its bearer. The paper gives a good conceptual a brief introduction of the
housing crisis in UK. Moreover, this study has given some important points that are really
helpful.

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Table of Contents
Introduction......................................................................................................................................3
Background of the issue...................................................................................................................3
Consequences caused.......................................................................................................................3
Conclusions......................................................................................................................................6
Recommended solutions..................................................................................................................6
References........................................................................................................................................8

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Introduction
Economic instability has affected many aspects of life. This has not left the younger
population those who are struggling to find the jobs of their dream. The scenario is common in
few countries across the globe (Mulliner, Smallbone and Maliene 2013). UK like such countries
does also have the same issue. Housing ownership is now running out of the hands of the
younger population. This is simply because the housing prices are climbing up to new heights
with the passage of every single year. On the other hand, the average income of most citizens in
the country in specific the younger population is more than six times lesser than the actual
housing cost (Collinson 2017). This study is aimed at analyzing the crisis of housing in UK.
Background of the issue
England in particular is in a terrible condition in terms of housing affordability (Poon and
Garratt 2012). The housing prices in the country are more than seven times the average income
of the local people. This has resulted in the most dreadful situations country has ever witnessed
in the last eight years. London is one of those cities where housing affordability has now become
a challenge to a large number of people. Oxford, Winchester and London are respectively the
hardly hit cities in UK. The housing affordability in such cities has become the worst ever
(Collinson 2017). Numerous research works have found that housing affordability do also affect
the development of little kids and the adolescent. As opined by Coley et al. (2013), kids and
adolescents belonging to a low income family gets influenced by the housing affordability
challenges. Such families find this struggling to provide a safe and secured shelter to their kids.
They are forced to live in a rented house where they live an unstable life (Coley et al. 2013).
Consequences caused

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The housing affordability issue is causing many consequences such as the follows:
Home ownership is now challenging-
On an average, income of common people is almost seven times lesser than the house
pricing. In such situation, ownership has now become a challenge to the younger population.
Despite the hard work they do, they are finding this difficult to own houses. They are living in an
unbalanced stage of life where they do not even have a stable life (England.shelter.org.uk 2017).
According to Blanchflower and Oswald (2013), rising housing price is challenging not only to
the younger population to own a house but it also challenges the labor market. The author has
given evidences in support of the views by taking the example of rising price of housing in the
United States.
Expensive housing costs-
The expansiveness of housing is putting up pressure on the younger population and the
common people for not being able to own the house. The situation is challenging because of two
reasons such as high cost of housing and a comparative lower average income of people in UK.
The lower income has not only forced a major population to be away from owning the houses
but it has also troubled the monthly repayment to many. A large population in the country is
finding this difficult to repay their monthly mortgage loans (England.shelter.org.uk 2017). In the
opinion of Foot and Gomez (2014), growth in housing rental is lesser than the growth in the
average income of the common people in UK. This actually means that the trend is shifting to
rental housing because owning a house in UK has now become a challenge. Younger population
is finding this difficult to repay the mortgage amount.
Increased renting of homes-

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The existing challenge has supported the shifting of trends from owning the house to
renting that. The shifting trend is unstable as well. There is no guarantee of hidden fees and
eviction. A large population is finding this an alternate solution to the existing issue. However,
the rental housing is not secured too (England.shelter.org.uk 2017). As opined by McDonald
(2015), affordable housing is a challenging concept. The author has argued by giving the
example of the United States that it is very difficult for the respective local governments to
establish flawless policies to provide affordable housing. This is what has been observed in the
facts stated in the chosen article that a significant population of UK is heading towards rental
housing; however, this is still unstable and unaffordable.
Rising levels of homelessness-
The rising prices have caused an increment in the homelessness of a significant
population. The younger population in UK is mostly incapable in owning a house. They are
switching over to rented house. They view this as an alternative to the existing issue. However,
the selected option is mainly insecure. This is because of many hidden facts in the dealing of
rented houses. The owning of house is comparatively much reliable; however, it is increasingly
running out of the hands of many. The expensiveness of housing is enlarging in its effect with
the passage of every year. Reliance on private landlord is increasing. This means an increased
instability of housing. People are mostly rented and are living an unstable & unsecured life in the
hands of others. Such life is not progressive for the kids or the adolescents
(England.shelter.org.uk 2017).
Clarke et al. (2015) have supported the facts that homelessness is increasing in UK
among the young population. Authors have supported the facts with evidences form different

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statistics on the young population who are using homelessness services. They have proved the
fact that there are numerous young populations who are already into the homelessness condition.
The facts presented by the authors simply support the validation of truth that a large population
of young group in UK is reaching to homelessness condition.
Conclusions
The housing crisis is becoming severe with the passage of years. The soaring price of
housings has been adjoined with the incompetent average income of people. The increasing
difference in the housing price and the average income of people in UK are the two facts that
have affected the housing situations in UK. Consequently, the young population is now more
reliant on the rented house, which is on the other hand is not reliable either. Rented house is
unstable and risky as well. There is a threat of extra hidden prices during the time of dealing.
Apart from this, private landlords do take the advantage of such circumstances. They can
increase the rent at any point in time. The young population who is incompetent with the low
income is now bound to rely on the rented house. They are not capable to repay the monthly
mortgage, which they had taken before. In such a crisis situation, it is important to have an
affordable and a reliance option in housing. However, going by the present situation, it still looks
challenging. The local government needs to take some significant initiatives, which could
actually provide some relief from the housing affordability issues in UK.
Recommended solutions
Construction of more houses in a new town will be a good move. This construction will
be a part of the local government policy (Pleace et al. 2015). This means that the people will get
an option to be in the newly created town with handful rules and regulations. Such strategy will

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help the people get their home in a secured policy framework. Moreover, this will also help the
homelessness issue. Additionally, this will provide a reliable and affordable experience to the
people living in such locations. However, the local government of UK needs to have serious
considerations on the causes behind the housing issues.

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References
Blanchflower, D.G. and Oswald, A.J., 2013. Does high home-ownership impair the labor
market? (No. w19079). National Bureau of Economic Research.
Clarke, A., Burgess, G., Morris, S. and Udagawa, C., 2015. Estimating the scale of youth
homelessness in the UK. Cambridge: Cambridge Centre for Housing and Planning Research.
Coley, R.L., Leventhal, T., Lynch, A.D. and Kull, M., 2013. Relations between housing
characteristics and the well-being of low-income children and adolescents. Developmental
psychology, 49(9), p.1775.
Collinson, P. 2017. Affordable housing crisis has engulfed all cities in southern England, says
Lloyds. [online] the Guardian. Available at:
https://www.theguardian.com/money/2016/mar/26/affordable-house-prices-engulfs-southern-
england-lloyds-bank [Accessed 23 Oct. 2017].
England.shelter.org.uk. 2017. What is the housing crisis - Shelter England. [online] Available at:
http://england.shelter.org.uk/campaigns_/why_we_campaign/the_housing_crisis/
what_is_the_housing_crisis [Accessed 23 Oct. 2017].
Foot, D.K. and Gomez, R., 2014. Population ageing and sectoral growth: The case of the UK,
2006-2026. Oxford Journal: An International Journal of Business & Economics, 2(1).
McDonald, J.F., 2015. Affordable Housing: An Economic Perspective. Architecture_MPS, 7(3),
pp.1-16.
Mulliner, E., Smallbone, K. and Maliene, V., 2013. An assessment of sustainable housing
affordability using a multiple criteria decision making method. Omega, 41(2), pp.270-279.

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Pleace, N., Culhane, D., Granfelt, R. and Knutagård, M., 2015. The Finnish homelessness
strategy–an international review.
Poon, J. and Garratt, D., 2012. Evaluating UK housing policies to tackle housing
affordability. International Journal of Housing Markets and Analysis, 5(3), pp.253-271.