England faces a crippling housing shortage that has left millions struggling to find affordable homes

The root of the crisis is complex, but a combination of government policy failures, rising demand, and insufficient supply has made it increasingly difficult for many to get on the property ladder or secure long-term rentals writes Zah Azeem, Partner at Wimbledon based Chartered Surveyors Scrivener Tibbatts and a specialist in Party Wall Agreements.

England’s housing crisis didn’t appear overnight. It’s the result of decades of missed opportunities, short-term political thinking, and market deregulation.

Chronic Underbuilding: For years, successive governments failed to build enough homes to meet demand. Between 1950 and 1980, post-war Britain saw large-scale public housing construction, but this slowed dramatically in the decades that followed. Since the 1980s, housebuilding has consistently lagged behind the pace needed, with local authorities and the private sector both building fewer homes than required.

Right to Buy: Introduced in the 1980s, Margaret Thatcher’s Right to Buy scheme allowed millions of council tenants to purchase their homes at discounted rates. While it was a boon for many working-class families, it also severely depleted the stock of social housing. The homes sold were never replaced at the same rate, leading to a long-term decline in affordable housing options.

Planning Restrictions: England’s planning system has been a major roadblock to increasing housing supply. Strict regulations, combined with local opposition (NIMBYism—Not In My Backyard), have delayed or blocked many new developments. While the intention was to protect green spaces and heritage sites, the effect has been a bottleneck in areas where homes are desperately needed.

Rising Demand: As England’s population has grown, driven by both internal population increase and migration, demand for housing has surged. Cities like London, Manchester, and Birmingham have become magnets for young professionals and international workers, pushing up house prices and rents. At the same time, stagnant wages have left many priced out of the market.

The impact of the housing shortage is being felt across society. Homeownership rates have plummeted, with younger generations bearing the brunt. The average house price in England now sits at over eight times the average income, making it one of the most expensive housing markets in the world.

For renters, the situation is equally dire. The private rental sector has grown rapidly, but without the regulation seen in other European countries. Tenants face high costs, short-term leases, and poor living conditions, with little security. Social housing waitlists have ballooned, with hundreds of thousands stuck in temporary accommodation or unsuitable homes.

What Can Be Done to Reverse the Crisis?

Fixing England’s housing shortage needs bold and sustained action from the new government, with a long-term strategy that addresses both supply and affordability. Here’s what needs to happen:

Build More Homes: The government must significantly ramp up housebuilding, aiming for 300,000 new homes annually. This will require incentivizing both private developers and local authorities to build affordable homes. Public housing construction should be a priority, with the government investing directly in building new social housing to replace the stock lost through Right to Buy.

Reform Planning Laws: While protecting the environment is important, planning laws need to be more flexible to allow for faster and more efficient development, especially in urban areas. Local authorities should be encouraged to grant permissions for higher-density housing in cities, where land is scarce but demand is high.

Invest in Infrastructure: New housing developments need to be supported by better infrastructure, from transport to schools and healthcare facilities. By investing in infrastructure, the government can make it easier to develop new housing in areas outside of the already crowded South East, spreading economic growth across the country.

Introduce Rent Controls and Tenant Protections: To ease the burden on renters, the government should introduce stronger tenant protections, such as longer leases and rent controls, as seen in countries like Germany. This would help stabilize the rental market and give renters more security.

Tax Land Speculation: A land value tax could discourage developers and investors from sitting on unused land, waiting for prices to rise. By taxing land that is left undeveloped, the government could incentivize the faster construction of new homes.

Support First-Time Buyers: Schemes that support first-time buyers, such as Help to Buy, need to be expanded and made more effective. At the same time, there should be limits on speculative buying, particularly from foreign investors, to reduce competition and allow more locals to get on the housing ladder.

England’s housing shortage is not insurmountable, but it requires the political will to make tough decisions. The longer the government waits to take decisive action, the more the crisis will deepen, pushing homeownership further out of reach for future generations and increasing homelessness. A coordinated approach that focuses on building more homes, reforming the market, and protecting renters could turn the tide and solve a problem that has plagued England for far too long.

If you would like to discuss Party Wall, Leasehold or Freehold valuation issues, please contact me direct via email at zah@scrivenertibbatts.co.uk or call 020 8947 7040.