Housing supply

Landlords forced to compromise due to lack of suitable housing supply

“It’s not just the quantity of homes that we’re missing, but the type and suitability of properties coming to market – whether new or existing homes.”

The report found that two-thirds of Britons (59%) feel trapped in a property that does not meet their needs, but have nowhere to go because of insufficient suitable accommodation, the cost of moving and properties too expensive in the desired area also prove this. many obstacles to find the right home.

Nearly a quarter (23%) of people who are downsizing indicate that the lack of suitable or available supplies is their main barrier to moving. As the Housing Britain report shows, this limits the availability of larger properties – demanded by Stages Two and Three – from being released until those further down the housing ladder. As a result, the majority of homebuyers at all levels (60%) say there is not enough suitable housing in their area.

According to the Company’s research, a quarter (27%) of first-time buyers said they would be willing to buy a smaller property or move to a more affordable location (23%) to achieve their aspirations.

Those in the middle of the property ladder – seeking larger properties and more outdoor space – are most likely to compromise by moving away from family and friends, towards a more affordable place, with a longer or more difficult route, or on the size. Downsizers, however, are more willing to settle for less outdoor space and fewer bedrooms in order to make their next home purchase.

With three-quarters (75%) of homebuyers worried that home ownership will be pushed out of reach, respondents say the government is responsible for solving the housing crisis and could start by removing stamp duties. Two in five (41%) suggest a permanent abolition of the tax could solve some of the problems by easing the financial burden, while a third (35%) said more homes for all stages of life should be built. Similarly, a third (32%) say the government should provide more financial support at all stages of the housing market, not just first-time buyers.

Nitesh Patel, an economist at the Yorkshire Building Society, said: “Housing demand has far outstripped supply for years, but it’s not just the quantity of homes that we’re short on, but the type and suitability of properties coming to market – whether new or existing homes.

“Buyers’ needs and priorities change as people move up and up the housing ladder, but there are a significant number of properties, especially larger family homes, currently occupied by trapped downsizers. These houses could be vacated if the people occupying them felt that there was suitable accommodation to move to in their area. Looking at the statistics, however, we can see that over the past five years, bungalows, for example, have only accounted for around 1.5% of new homes registered. A continuation of this trend will only fuel the current situation, not help it.

Ben Merritt, director of mortgages at the Yorkshire Building Society, added: “The current housing crisis has been going on for years, so it’s sadly no surprise that many homeowners have no choice but to compromise on their dreams.

“The cost of living is already high, and as the value of the real estate market soars, people at all stages of homeownership will struggle to find an affordable property that meets their needs. First time buyers are often overpriced, while downsizers face such a limited supply of housing that for those who want to move there is simply nowhere to go, leaving second and third steppers distraught when it is about finding and buying suitable and available housing.

“The Prime Minister’s recent speech demonstrated that the government is aware of some of the barriers to homeownership identified by our report, including the difficulty for many of saving for a deposit. While the commitment to build more ‘right homes in the right places’ is welcome, the government’s overall focus remains primarily on first-time buyers, as our report shows attention is in fact needed at all stages of home ownership.

“No matter how old someone is or where they are on the scale, they all deserve more support. A third of respondents believed that more houses should be built to meet the needs of people at all stages of their lives. This is a larger issue and it is essential that the frustrations of the public – those experiencing these challenges – are understood and taken seriously by the government.