Owning a property is an essential aspect for every individual. Wait, are we discussing purchasing a house in the UK? Of course, yes. Affordability of housing merely affects an individual’s condition- both mentally and physically. Did you know, 2/3rd of the UK residents are still living in the rented sector? Well, the reason is pretty visible- due to unaffordability factors in the locality, and the cost of the property. Well, location is another major concern for the majority of residents in the country.
Research says, nearly 12,000 tenants have chosen to live in the rented sector by their own choice and not due to the prices of houses. How about the rest? The remaining group of individuals has no options left but to live as a tenant. The current rent or tenant statistics is 5 million, and it is expected to be 5.80 million households in the next two years. Of course, the tenants would be elderly, retirees and the youngsters of the country. What are the reasons for rising prices in the real estate market?
Reasons for unaffordable growth in the housing sector
Well, here are some of the significant concerns that we need to look upon, and make it affordable for every individual though. Mentioned below are some massive factors:
- The higher cost of living
- The absence of rent control measures
- Increase in Private Landlords
- Too much of the wealth gap in the country
- Non-diagnosing of the root causes from media and government
How can we make it affordable?
Well, this cannot be a single person’s thought or action. This needs many hands and brains to work upon and raise the concerns. The reasons are already known to most of us. Not only buying houses have become expensive, but even the roof repairs and maintenance also have been costly. Well, research says that owning a property in the United Kingdom is the most luxurious asset. To prevent the rise in prices, we can act upon some specific policies:
- Why not free up those local authorities to invest or purchase in a new property?
- Private landlords and their pricing modules need to be monitored and manage with necessary regulations.
- Land and property taxations need to be reformed once again.
- Land Hoarding can be replaced with Development in the sector.
However, acting upon being a single individual is nearly impossible. Did you know many of the individuals have started moving to other places leaving London altogether? Most of them are young buds. Approximately 7,000 people are homeless and are spending their cold nights on the busy streets. Not just the UK, many countries need to reform their real estate sector and housing policies. This will undoubtedly make the living of every individual better and improved. Well, as mentioned already some of the tenants have entered the rental sector with their own choice, may be due to their work, or other factors, but the majority of them have chosen to be a rented citizen due to their unaffordability.
Inevitably, the private rented sector will grow to enhance in the tenant demands, but is this working well for the whole industry? Don’t you think there’s a need to act upon these issues?
Source: London Loves Business