Britain’s housing crisis: five possible solutions

It's grim news for prospective home buyers, especially first-timers and low income earners, and even baby boomers hoping to see their 30-year-old children leave home some time in the next decade. The National Housing Federation (NHF) reports that the UK housing market will descend into "crisis", with millions locked out of home ownership unless the supply of houses is dramatically increased. So what can be done to solve the housing crisis?
 
1. Improve government backing

Housing demand needs to be tackled at the level of central government, said Lynsey Hanley in the Guardian, because only it has the money to pump into stalled house-building schemes, as well as "instigating a fully funded programme of multi-tenure building". Sadly, those with the power to do something about the issue "seem paralysed, if not by boredom, then by a conviction that there are some problems you can't do anything about".
 
2. Tax foreign speculators

At the top end of the market, the government could levy specific taxes on foreign speculators, said Ed Howker in the Daily Telegraph. One big reason for the housing shortage is that huge numbers of properties sold are not actually purchased to live in. "Domestic buy-to-letters have been joined by Russian and Far-Eastern speculators who buy new homes for cash for tax efficiency, a safe haven and in some cases, the perfect mechanism for money laundering".
 
3. Increase neighbourhood building

The government has been "hyperactive" in coming up with solutions to the housing crisis, says David Blackburn in the Spectator. Under its new 'neighbourhood planning scheme', communities will be able to take control of planning and build new homes and businesses as and where they wish. "It's hoped that locals will be more amenable to construction if they, rather than government authorities, master it."

4. Break the cycle

Unfortunately, it's a bit of a Catch 22 situation, says Mike Sergeant on the BBC. Housing supply is just one side of the equation. Developers say they are willing and ready to build more homes but are concerned they won't be able to sell them, because potential buyers will not be able to raise the finance. "The dilemma for policy makers is how to escape this damaging cycle, of restricted supply leading to high prices, which leads to curtailed demand, resulting in unwillingness to build."

5. Live in a houseboat

The government's latest answer to the shortage of affordable homes in Britain is the houseboat, says Andrew Grice in the Independent. Local authorities will be given financial incentives to allow more residential moorings on rivers, canals and tidal waters, while the public could qualify for housing benefit to cover mooring fees. While housing minister Grant Shapps admitted "they'll never replace" bricks and mortar, he believed many more people would like to live on boats. ·