When a country faces a property crisis like Evergrande, the repercussions can be catastrophic.
However, when there’s little value attributed to existing land and property, the impact is even more devastating. A recent study highlighted the dire state of home values in the UK, shedding light on concerning statistics.
Among EU nations, Britain holds the title for the oldest housing stock, with nearly four in ten homes constructed before the end of World War II.
This figure is twice as high as in the Netherlands and nearly four times greater than in Finland, the only country outspending the UK on housing overall.
The Resolution Foundation, in its quarterly outlook for the UK housing market, revealed that Britain’s housing stock offers the poorest value for money among advanced economies. The study, published on Monday, underscored the sector’s crisis, which is expected to play a significant role in the upcoming election.
According to Adam Corlett, principal economist at the Resolution Foundation, the housing crisis in Britain encompasses high costs, poor quality, and low security, affecting numerous households.
What’s the return on investment buying a tight space in the UK? Almost none!
Decades of insufficient homebuilding and modernization efforts by successive governments have exacerbated the situation, necessitating urgent change.
According to the burgeoning report:
“Britain’s housing crisis is decades in the making, with successive governments failing to build enough new homes and modernise our existing stock. That now has to change.”
Furthermore, the report highlighted that 38% of homes in the UK were built before 1946, significantly higher than in Italy (21%) and Spain (11%). Older homes often lack proper insulation, leading to increased energy expenses and a heightened risk of dampness.
Additionally, the study examined the comparative housing costs across different countries, revealing that UK residents pay more for housing relative to other goods and services than in any other developed country. This situation persists even in comparison to nations like New Zealand and Australia, known for their persistent housing crises.
Home Objective Does Not Align With Net-Zero Goals
The think-tank found that homes were located further from jobs than the “majority” of other European nations, and were also older and less well insulated despite the UK government’s plan to achieve net zero carbon emissions by 2050.
For those considering purchasing or constructing properties in the UK, the findings of the study suggest a need for reevaluation.
