Bank of England are getting in on the act in peddling the myth that there is a housing shortage in the UK. Government have been saying this too. However, it doesn’t matter how many times you say it, it doesn’t make it true.
There is no shortage.
There are around 55 million people needing housing, and there are 66 million rooms available in the UK.
The problem is that they are not in the “right areas”, although this isn’t strictly true either.
The “housing shortage” is largely a London issue, but even here, there are enough rooms to house everyone. They just aren’t in the right areas.
The problem is much more specific than a shortage, or even not being in the right areas.
We have an entire new generation of middle class 20-somethings who have grown up middle class. Mummy and daddy have provided everything to the highest quality. Four bedroom detached house with garden and double garage, two BMWs in the drive, nice area, shops nearby. Basically, an ideal childhood.
What the kids don’t see though is that their parents worked their assess of to get it. Twenty somethings think that they can move seemlessly from this middle class lifestyle to their own without putting in the work. They’ve grown up thinking they are a prince or princess, use to the lifestyle, and they want it too. NOW.
Unfortunately, in the real world, you start at the bottom. Well, most of us do. It’s a shitty one bedroom flat that’s rented, as the starter home. And then you work up. But the new adult generation want the white picket fence now.
So, there are a lack of dream houses that are affordable.
Whether it is a housing shortage or a more specific lack of dream houses, it is a problem of societies making. If it is the former, it is more easily solved: build more houses. But if it is the latter, that is some tricky shit to fix. It suggests that the work ethos isn’t being drummed into our kids; that you have to work hard, save hard, and then you might get what you want. But you can’t have it now. You’ll have to wait (and who is able to do this most basic of thing now a days?).