The UK housing market is currently one of the worst markets in the world. As prices go up and buyers decline, government officials continue to search for remedies to this alarming issue. Here are three quick ways to fix the current UK housing crisis.
Supply = Demand
This concept is incredibly simple, yet seems to be a difficult task for UK government officials. Prime Minister Theresa May has made it her personal goal to solve the housing crisis as soon as possible. One solution that she has kicked around is selling more homes to first-time buyers. May has planned for massive construction of new homes across the UK. The idea sounds noble, but the process is far from finalized. While workers build homes and price them, a lack of new buyers are emerging on the market. The simple solution is for government to wait on the construction of new homes until buyers are fully committed to exploring the market.
Faster Home Construction
With May’s solution to build more homes to attract younger buyers comes a painfully long construction process. The UK may plan to build a quarter of a million new homes, but the final results usually fall short. Experts point to Japan, where building a home can take only 45 days. The home is guaranteed for a half-century and is built for a lower cost than usual over in the UK. Whether the homes should be smaller in general or the construction process needs to re-evaluated, time should become less of a factor moving forward.
Yes, UK officials want the younger generation to buy homes, but renting is always the first step towards owning. If this is a path that May truly wants UK citizens to follow, then lowering rent would be a key into kickstarting this initiative. The more millennials can save on rent, the more excess cash they will possess to put down on a home.