What is the UK housing crisis?
Rising rents, high house prices and a lack of properties available to buy have been the main contributors to the UK housing crisis which has been brewing since the turn of the century.
As things stand, many people are being priced out of owning a home, and those who can afford a property are part of a demand that far outstrips supply.
More recently, soaring inflation due to a price rise in essential goods and energy bills has exacerbated the problem, leaving UK residents with even less spare cash to sink into savings.
How can we solve the housing crisis?
Increasing property supply to meet demand is key to solving the housing crisis, and the UK government has plans to invest in improving available housing and building more homes. However, with a lack of projects approved by local councils and the current economic situation causing a delay in building work, progress has been slow.
One way that the government is attempting to speed up the process is by embracing modular construction. This is the process of creating pre-fabricated units in a controlled factory setting and transporting these together to a construction site for fast and easy assembly.
This method of construction is quicker and cheaper than traditional building practices and allows for better quality control. It’s also more sustainable, helping the government to reach their goal of net zero carbon emissions by 2050. This means that modular housing could be a short-term solution to availability issues while providing long-term environmental benefits too.
Modular construction can also be utilised in other ways to help solve the housing crisis. High-quality temporary accommodation can be provided for residents while their buildings are being renovated or created. Construction companies can look into temporary modular buildings for hire to store the pre-fabricated units on-site for the quicker completion of new homes.
The future of housing in the UK
Even with the government embracing modern modular building methods, it will take a while for the housing crisis to dissipate as supply catches up with demand.
In addition, ultimately cost is the major factor that is slowing down property sales, especially in the current climate where mortgage rates have spiked, and while household bills continue to climb. Without a drastic change in rent rates and a reduction in house prices, most will remain unable to become a homeowner.
Many leading banks announced a cut in mortgage prices this week as inflation is set to fall to 3.8%. Although there are many challenges to overcome in the journey to solving the UK housing crisis, this could be the start of a series of positive changes that opens up the market to more residents.