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Brokers - why aren't we making the most of our housing?

Journalist: John Fitzsimons, Freelance

ended 03. March 2023

Morning brokers

Would be great to get your thoughts on why we as a country aren't using the homes we have very effectively. 

It's off the back of data in the Census, which found that two thirds of homes in England have more bedrooms than are required by the owners, rising to 76% in Wales.

Alongside this, research from Leeds BS has found that we have around 700,000 empty homes across the country at the moment (https://www.mortgagesolutions.co.uk/news/2023/02/23/empty-homes-in-england-near-700000-leeds-bs/)

Would be great to get your thoughts on the following, if possible?

  • What is causing this situation? Is it a major issue? 
  • What can be done to solve the imbalance? Is it something that actually needs solving?
  • Some believe that a lot of this is down to the ageing population sitting on homes that are larger than they need - how can we incentivise them to move and free up space?

5 responses from the Newspage community

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Riz MalikVerified
Independent Financial Adviser at R3 Wealth
The government should pay close attention to the promotion of the Rent a Room Scheme, given its potential benefits for both resident landlords and renters. This scheme allows resident landlords to generate tax-free income by renting out furnished rooms, while renters can benefit from low-cost housing. The scheme is especially pertinent in light of the UK's ageing population, as it may provide a viable solution for those who prefer co-living arrangements to living alone. This could free up more property for those in need of more space.
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Nick Lovell0
Equity Release Director at Concept Financial Services
A key driving factor can be the decision of older clients to retain their homes due to the emotional attachment they have to their property and the memories associated with raising their family there. When advising clients seeking to release equity, downsizing is always explored. However, many clients decline this suggestion, citing their attachment to their home as the reason for their reluctance to move.

In cases where a property is unoccupied and requires refurbishment to make it habitable, there is a need for a Government incentive to stimulate investment in the rejuvenation of old housing stock and bringing it back to market.

An opportunity for first-timers to secure property at an attractive price maybe? However, the challenge lies in persuading lenders to offer borrowing for these types of refurbishment projects.
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Jonathan Burridge0
Founding Adviser at We Are Money
We need to build more, varied stock rather than jealously eyeing someone else's home and deciding it is more than they need. On that basis, we should be suggesting measures to stop overweight people from eating too many pies or questioning anyone driving on their own in a car that has more than a single seat. Those ideas would be met with the response they deserve. We need to embrace modern construction methods to reduce the cost of building new homes, we need to make planning faster and easier to allow the development or redevelopment of land and we need to build more than just small apartments.
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Scott Taylor-Barr0
Principal Adviser at Barnsdale Financial Management
You buy a house, you sell a home. It's very easy to talk about moving house when it's not your home, but a very different prospect to say to someone who calls it home to "just move". That's where they raised their children, or where they had that great party before Dad passed away, or where they have the whole family over every Christmas. It's not easy to just give that up. Overall, we have an odd obsession with how many bedrooms a property has, rather than its actual size. Most other countries quote property as so many square metres, which makes more sense, otherwise I could knock a few walls down when my kids move out and go from a four-bedroom to a two-bed - is that then suddenly OK, even though the floor space is exactly the same?
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Graham CoxVerified
Director at Bridging Hub
One obvious solution is to increase the £7500 tax-free allowance under the Rent-a-room scheme. This would increase rental supply, bring down rents, help with the cost of living and reduce homelessness. And there's an awful lot of people living on their own who might like a bit of company.