One of the best articles I’ve read on affordable housing in the UK just showed up on my feed, and I have to share it with everyone.
This article by Dr. Rory Hearne could have been written for the US as well. So, sit and spend a few minutes reading this very insightful reason why affordable housing could happen quickly but won’t.
The most frustrating aspect of the housing crisis is that the Government has the solutions to it sitting right there on its desk. We hear it constantly make excuses, but the truth is there are many things it could be doing right now that would ease this crisis.
But why isn’t it doing them? Because it is afraid of taking on the big vested property interests that are making millions from the squeezing of an entire generation. Property prices and rents are kept high due to the government’s long-term commitment to the market.
The decisions it makes do not serve the interests of the generation in need of a home. Instead, they serve investor funds, landlords, banks, developers, landowners, and the property industry.
Dr Hearne has shown over and over, including in his book, Gaffs: Why No One Can Get a House, and What We Can Do About It, that there are real solutions to this crisis that would make a difference now.
Here are just a few of them:
Bring into use rapidly the huge number of vacant and derelict homes
The powers that be say there is a lack of supply of homes – yet there are 166,000 vacant homes in this country, and 38,000 of those are vacant rentals. There are tens of thousands more derelict properties.
Ban and restrict Airbnb-type conversion of rentals into short lets
Thousands of homes are being lost as long-term rentals to short-term lets via platforms like Airbnb. This is the ‘gigification’ and ‘precariousation’ (I had to look these terms up on Google) of housing – for more profit for landlords and global digital platforms.
Freeze all rents
This includes the freezing of new market rents and enforcement of rental regulations. When new rentals come to the market, or a unit is unlet for two years, the landlords can charge the ‘market’ rent. Essentially there is no control over new rentals to the market.
Set up a state home-building company
This is one of the key solutions to the crisis. Rather than being held over a barrel by the private developers, the Government should set up a State developer and construction company so that come boom or bust – we are guaranteeing the building of homes.
Use modular home factories to provide thousands of homes at lower cost, greener, and rapidly.
There are factories in Ireland building three-bed turn key modular homes in two weeks for €210,000 and €100,000 to site for a two-bed home.
Boost the not-for-profit social and affordable home providers
Housing Associations like Respond and Cluid are building social and affordable rental housing. However, they need access to land and more financial backing from Government.
CLICK HERE to read the entire The Journal article
