The UK is currently in the midst of a housing crisis. There is a massive shortage of homes and home ownership is out of reach for millions of people. With this situation, the decision from the Department for Levelling Up, Housing and Communities to give back £1.9bn has sparked a massive backlash. Many are considering whether it means the current Government has given up on housebuilding entirely. As one of the top architects in London, we want to take a closer look.
How long have we been dealing with a housing crisis?
While the signs of a lack of housing supply have been more prominent for the past few decades, the issue is actually much older. Research from earlier this year found that Britain has had issues since 1947. Housebuilding growth was only 1.2% per year between then and 2019. It was a drop from 2% between 1856 and 1939. This put the UK behind other major European countries, including Germany, Norway, and Denmark.
According to the data, the UK is missing as many as 4.3 million homes. That is a massive amount of properties and showcases why there is such a shortage now. It also explains why prices and rents are soaring.
What has the DLUHC done?
New figures obtained from a freedom of information enquiry showed that the department has given back a third of their budget. This includes a huge £255m that was to be for affordable housing. In addition, there was £245m for building safety improvements. In total a massive £1.9bn was not spent.
Why have they done it?
A number of different reasons have been given for the decision to return the funds to the Treasury. One is that soaring interest rates make it harder to invest. We have seen the impact here in our work as architects in London. The higher rate of interest can make people concerned about investing in property.
A second reason is uncertainty following the covid pandemic. Some officials blame the conditions post-covid for making it tricky to decide on some projects.
Housebuilders also claim there are key issues affecting them. A major one is environmental regulations, particularly a need for nutrient neutrality. What this means is there is a legal obligations to ensure that nitrate and phosphate from projects does not get into local waterways. Restrictions like this mean it is very tricky for builders to meet supply targets.
What does it mean for housebuilding targets?
The DLUHC said they are still committed to delivering their target of 300,000 new homes per year. They will continue with projects to help achieve this goal, including the £11.5bn plan for affordable homes.
However, there are fears that even 300,000 homes per year would mean it would take as long as half a century to fill the housing gap. In that time economic conditions could make it impossible to consistently hit the target.
Do you need help from expert architects in London?
Working with passionate, creative architects can be a fantastic way to make projects a success. It can help with housing, whether it is an entire estate, a block, a single road of homes, or individual properties. Good designs here can satisfy all requirements, including space, sustainability, environmental factors, and quality. They can also find solutions to deal with cost factors.
If you want the perfect partner here, you should look at what we can do. We have become one of the top architects in London by producing quality designs and offering exceptional services. Whatever you have in mind, we are confident we can create it. So, get in touch to let us know your ideas.