Affordable Housing in the UK

According to an analysis by the Think tank Civitas, more than a million young men and women in age 15 to 34 are living with their parents. In 1999, 35 per cent lived with parents, and in 2017, 40 per cent in the age group 15 to 34 were living with their parents.  

The household size diminished, and the number of homes per capita increased. Still, in the last decade, the trend reversed where children choose to live at home for several reasons, including financial pressure, lifestyle and cultural goals. 

Private rents are becoming unaffordable for the working class as the house price is approximately eight times the average earnings. As a result, young Britons and even young Americans live back with their parents where one in five men in age 25 to 34 lives with their parents, and one in eight women stay back in their parent's homes.

New Recommendations For Empty Home Taxes

A study conducted at University College London tried to find a relationship between a property with no permanent residents and affordability. The study suggested some low-use properties in some unaffordable regions, which are bought as holiday homes or second homes or for investment purposes, are becoming expensive compared to full-time resident properties. 

Some of the low-used property is more expensive in comparison to permanently occupied homes. The study found that 38 to 47 per cent of the population lives in such regions where empty properties are expensive. 

The low-use property is, on average worth £363,000 – that is 18.5 per cent more than the average home price (£306,000), and the implementation of empty home taxes can encourage the owners to rent out such property. 

The study claimed houses worth £123 billion are not used in Britain, and the implementation of taxes on second homes can force the owners of second homes to rent their property. The research was conducted on one-third of local authorities in the country, covering 40 per cent of the population, and it found that up to 340,000 homes were rarely used.

Most such properties are found in London, the South West and Kensington, where property worth £21 billion remained underused. Currently, only four in ten people live in areas where the average value of the low-used property is higher than permanently occupied.

Growth Declined in January

January is the most difficult month for home sellers, and uncertainty related to Brexit is also putting off some potential buyers. 

The RICS outlook for housing prices for the coming months and the impact of Brexit issues show that property values fell in most parts of England but gained in Scotland, Northern Ireland, and Wales. Affordability and increase in taxes on investment property further restricted buying from overseas.

Halifax's January report claim after the gain of 2.5 per cent in December 2018, housing grew 0.8 per cent in the year to January, which is 1.3 per cent down from December gains, and now, the average house price in the UK stands at £223,691.

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