What the rising cost of living means for the UK’s housing outlook

The rising cost of living is one of the most significant issues facing the UK, with inflation rates rising and wages remaining stagnant. The crisis has far-reaching consequences, including a significant impact on the housing market.

One of the most significant impacts of the rising cost of living on the housing market is the increased demand for affordable housing. With rising living costs, many people are finding it harder to save for a deposit, pay rent or mortgage payments, and maintain their homes. As a result, the demand for affordable housing has increased significantly, putting pressure on the already strained housing market.

Another impact of the rising cost of living on the housing market is the increase in homelessness. As people struggle to afford housing, many are forced to live on the streets or in temporary accommodation. The number of people experiencing homelessness has increased over the past decade, and the cost of living crisis is exacerbating this problem.

The cost of living crisis has also had a significant impact on the rental market, with rents rising in many areas across the UK. With wages remaining stagnant, many people are finding it harder to afford the rent, which is leading to an increase in rental arrears and evictions.

The cost of living crisis is also having an impact on the construction industry, with the rising cost of building materials and labour putting pressure on developers. This has resulted in a slow-down in new construction projects, further exacerbating the shortage of affordable housing in the UK.

Finally, the rising cost of living is impacting the UK’s housing outlook by creating a generational divide. Many young people are finding it harder to get on the property ladder, with rising house prices and stagnant wages making it challenging to save for a deposit. This is leading to a significant divide between those who own property and those who do not, further exacerbating existing inequalities.

So, what can be done to address the housing crisis in the UK? One solution is to increase the supply of affordable housing, through the construction of new homes or the repurposing of existing buildings. Another solution is to explore alternative forms of housing, such as co-living, community land trusts, and property guardianship.

Property guardianship is an innovative solution to the housing crisis, which offers affordable housing while also addressing the issue of vacant properties. Property guardians are responsible for occupying and maintaining empty properties on a temporary basis, providing a cost-effective solution for landlords while also offering affordable housing to those in need.

Furthermore, property guardianship offers a range of additional benefits, including the creation of communities within empty buildings, the reduction of anti-social behaviour in vacant properties, and the preservation of historic buildings. It also provides a sense of purpose for those living in the buildings, who are responsible for maintaining and securing the property.

The rising cost of living is having a significant impact on the UK’s housing outlook, with increased demand for affordable housing, rising homelessness, and a generational divide between property owners and non-owners. While there is no single solution to the housing crisis, property guardian schemes offer an innovative and cost-effective solution to the issue of vacant properties while also providing affordable housing and additional social benefits. It is time for policymakers and landlords to consider this solution as part of a comprehensive strategy to address the UK’s housing crisis.