How would YOU fix the housing market? We ask Generation Rent’s Ben Twomey

Whether it’s unaffordable house prices, higher mortgage rates, soaring rents or increased levels of homelessness, the housing market appears to be stuck in a never-ending crisis.

There remains an insatiable appetite to buy property. Many of those who don’t own aspire to, and pour their life savings towards achieving it.

It is a dream that continues to move further out of reach for many, as the chronic under-supply of properties means house prices rise and rents increase.   

As for those who already own, they tend to want more. Whether that means buying a bigger and better home, purchasing a holiday home or investing in buy-to-lets, the British obsession with acquiring property doesn’t stop at the first one.

Owning property has become synonymous with both wealth creation and wealth preservation and as the money keeps piling in, the prices keep going up.

Can you fix it? Each week we are speaking to a property expert about the housing crisis to find out their suggestions on how we might solve it

Government interventions often appear to add fuel to the fire. Stamp duty holidays, Help to Buy, Right to Buy and other schemes were meant to help more people on to the ladder. 

But while many of those initiatives were successful, they also had the effect of pushing up house prices further for those that came after. 

Worst of all, homelessness is rising. More than 300,000 people are recorded as homeless in England, according to research by the charity Shelter, with many in temporary accommodation. 

In This is Money’s new series, we speak to a property expert every week to ask them what is wrong with Britain’s housing market – and how they would fix it. 

This week, we spoke to Ben Twomey, chief executive of the campaign group for private renters, Generation Rent.

Ben Twomey, chief executive of the campaign group for private renters, Generation Rent

Does Britain have a housing crisis? 

Ben Twomey replies: Britain’s housing crisis takes many forms. It ranges from people on ordinary incomes being unable to buy a home, to people sleeping rough and families living in squalid, overcrowded temporary accommodation, or being forced to move far away from their work and communities.

The worst part, without a doubt, is the fact that we have thousands of children without a safe, long-term home, near to their school, whose families struggle to buy the essentials because rents are so expensive. 

Ultimately, millions of us are being denied the housing situations we were led to believe were the result of doing the right thing, and it is becoming more politically untenable.

How does this compare to the past?

Britain has had a housing crisis for nearly 20 years, with home ownership levels starting to fall well before the credit crunch. 

Throughout that time, increasing numbers of people have been getting stuck in private renting without the chance of finding an affordable, long-term home.

The mid-2010s saw rapidly rising rents, and increased evictions and homelessness cases, but concentrated in London. 

Since the pandemic we’ve had the same, but in much more of the country. There is increasingly no escape from the housing crisis.

What is the biggest cause of the housing crisis?

Housing crisis cause: Twomey says Section 21 ‘no-fault’ evictions have encouraged more people to become landlords, trapping increasing numbers of people in private rented homes

There are three main causes of the housing crisis.

Not building enough homes, which meant that people are spending more of their incomes on rent and are unable to save a deposit to buy.

Selling off council housing and not replacing it, which has trapped lower income families in the private rented sector that doesn’t treat them well.

And finally, Section 21 ‘no-fault’ evictions, which encouraged more people to become landlords, trapping more of us in private rented homes, while undermining the quality of those homes by making it easy to kick out tenants who need problems to be fixed. 

The initial wave of investment in buy-to-let also fuelled a culture where society believed that rising house prices were a good thing, which then led Governments to keep propping up prices even though it made things harder for first time buyers.

I’m a 45-year-old professional who rents and has no pension – should I worry? 

I am a practitioner psychologist working for the NHS and privately. I am not contributing into my pension as I am investing my earnings in professional development for my career.

I am now 45. I live in a rented flat and have now started to get a bit worried about my future.

What will happen when I get to retirement? Former pensions minister Steve Webb replies.

How would you fix the crisis?

We need a better set of rights and regulations for the private rented sector, so that tenants can treat their homes as somewhere they can live long term, and have the tools to take action if their home is in disrepair. 

This is being addressed in the Renters (Reform) Bill, though we need much better protections than what the Government is offering to give renters the certainty they need.

We also need to make renting more affordable. 

We can do this through the benefits system, with Local Housing Allowance that reflects actual rents, and by building social homes for renters who cannot compete in the market including families, retirees and renters with disabilities. 

We need to build homes of all tenures to meet demand in areas where people want to live, particularly flats and homes close to public transport so that it is environmentally sustainable. 

Building enough homes will take a long time, so we should think about what we can do with existing homes. 

The tax system currently encourages people to live in much larger homes than they really need. We should think about how we can encourage downsizing so that retired couples can effectively swap their four-bedroom homes with growing families currently cramped in 2-beds.

Will the housing crisis ever be fixed?

Right now, the housing crisis is as bad as it has ever been, but the response by renters and our supporters is as strong as ever. 

We have a Renters’ Reform Coalition pushing the Government to deliver on its commitment to abolish Section 21, and increasing numbers of influential people, including in politics, recognising the need to build more homes. 

The Government is under huge scrutiny for its decisions on housing.

Build where the demand is: Twomey says homes of all tenures should be built to meet demand in areas where people want to live

A solution feels like a long way off, but a new consensus is emerging. Renters could be the envy of homeowners, but that will only begin to happen if we are secure in our homes, able to afford our rent, and protected from poor conditions. 

The flexibility and rights that come with being a renter then need to be worth the significant portion of our income that goes straight into our landlords’ pockets. 

The housing crisis cannot continue to punish renters. Generation Rent believes the current situation can, must, and will change.

This post first appeared on Dailymail.co.uk