Wednesday, June 20, 2012

Joseph Rowntree Foundation Report - Housing Crisis

The JRF has published a report warning of an "escalating housing crisis" which is set to "lock over one million young people out of home ownership by 2020". The report, 'Housing options and solutions for young people in 2020', finds that an extra 1.5 million 18 to 30 year-olds will be forced into private renting in just eight years' time.

What will the housing system be like for young people in 2020?

Download summary report here

Download full report here

Recent economic, social and political change has resulted in greater uncertainty in the housing options of young people in the UK. The recession has highlighted challenges such as high youth unemployment and a lack of available credit.

This study aims to inform the development of housing policy and practice by identifying the key challenges likely to face young people who will be aged 18-30 in 2020. It explores:

• what shapes the housing experiences of young people;
• the challenges young people will face in the housing market in 2020; and
• policy responses to these likely changes.

CLG Committee Response to the  JRF Report

Clive Betts MP has  commented on the Joseph Rowntree Foundation Report on the housing crisis, stating:  "This excellent report echoes many points made by the CLG Committee in a report on the Financing of New Housing supply that we published on 7 May. Like JRF, we drew attention to the chronic housing shortage. Young people clearly feel the effects of the housing crisis, so we proposed a number of solutions for raising sufficient finance to see significant improvements in housing supply in England over the long term, including action to deliver more social and private rented homes.

"In particular, we highlighted the potential for substantially more investment by large institutions and pension funds but, like JRF, we acknowledged that the private rented sector will continue to be dominated by smaller landlords. We therefore called on the Government to bring forward proposals to simplify the tax regime in ways that will encourage such landlords to invest far more readily to build new homes.

"We also questioned the Government's flagship Affordable Rent model, expressing concerns that it could prove unaffordable in parts of London and may well prove unsustainable beyond 2015. We saw untapped potential in the historic grant on housing association balance sheets, and called for clarity on how it could be used to best effect. We also urged Government to ease centrally imposed constraints upon local authorities, such as on borrowing, to enable them to deliver more homes.  Taken together, these measures, along with others we propose, could boost supply, helping to meet the housing needs of young people in the years ahead."