‘Bold action, not piecemeal fixes, is the answer to Britain’s housing shortage’

Housing was a key plank of the manifesto that won Labour the general election in July 2024. It was also a priority for me, with Oxfordshire being an area of considerable demand and high prices despite lots of development. A lack of good, quality, affordable housing remains top of the list of issues that my constituents raise. Even above potholes.

House prices have risen faster than wages in many regions because we are still not building enough homes.

Higher borrowing costs, in no small part down to Liz Truss, have cooled demand. People looking to upsize could no longer afford to having a knock-on effect further down the chain slowing housebuilding down. This alongside increased construction costs, labour shortages, and planning delays have all contributed to a slowdown in housing starts, leaving supply unable to keep pace with population growth and household formation.

Government policy has had an impact too. The closure of Help to Buy in 2022 removed a key support mechanism for first‑time buyers. While the scheme had its critics, the absence of a government backed project to help younger households to access new‑build homes has affected demand for some developments contributing to a slowdown in construction.

Post‑Grenfell safety reforms, including the Building Safety Act (2022), were rightly prioritised but have added complexity and cost to the development process.

The Renters Rights Act, Awaab’s Law, and the strengthening of protections for tenants are long overdue. However, they have knocked confidence in the sector particularly as calls for things like rent caps have continued from some quarters.

READ MORE: ‘Council tax shouldn’t punish those who have the least or we owe the most’

The Bank of England’s rate hikes and the economic fallout from the 2022 mini‑budget created a more cautious lending environment. Mortgage affordability became a central barrier for buyers, dampening market activity. The demand is simply not there.

The UK’s housing challenges are not insurmountable. The government has made some progress, particularly with planning reform and a huge allocation of funding for social and affordable housing in last year’s Spending Review.

The six cuts in interest rates will help with the cost of borrowing. But without more bold action the government is simply not going to meet the scale of the challenge.

With the rights of renters now strengthened in law, the sector needs reassurance that further significant changes are off the table.

We must produce support for first‑time buyers with targeted, time‑limited schemes that avoid inflating prices. Kemi Badenoch and the Tories have zero credibility on this issue given the damage they did to the housing market in government. But their suggested scrapping of Stamp Duty is at the level of ambition towards which Labour should aspire.

We need to encourage modern construction methods, such as modular building, to reduce costs and speed up delivery.

Piecemeal interventions are not enough. Bold action is the only way to deliver the homes the UK needs. It is also what might just help Labour achieve the delivery that it needs if it wants a chance at the next election.

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