Opinion – It’s time we stopped lying about the housing crisis

One of the major issues contributing to the housing crisis is inflated property prices, driven by speculative investments and a lack of affordable housing options. The economic fallout from the pandemic has only exacerbated these problems, with job losses and financial instability further hindering the ability of young individuals to save for a down payment.

And this doesn’t even begin to factor in the intersectional struggles of Britain’s most vulnerable, specifically people of colour, those from single-parent households, and disabled or neurodivergent people.

Not to mention, the cost of living crisis has placed an immense burden on the younger generation. Rising inflation, coupled with stagnant wages, leaves little room for substantial savings.

The idea that the housing market is within reach for anyone with a bit of financial prudence ignores the harsh reality faced by those grappling with daily expenses and the challenge of making ends meet.

It’s time we start acknowledging these structural flaws in the housing market rather than perpetuating the myth that all it takes is disciplined saving.

The comments made by Howard Davies also reflect a broader issue of out-of-touch attitudes prevalent among the older, wealthier segments of society.

It’s essential for those in positions of power and influence to acknowledge the struggles faced by the younger generations and work towards creating solutions rather than downplaying the severity of the situation.

And while the housing crisis has been bubbling away for years, it’s only getting worse for those looking to get a foot on the property ladder.

Average house prices rose by 1.1% month-to-month in December 2023, the third monthly rise in a row.

The typical UK house price in December 2023 was £287,105, up from £232,305 in the same month a year earlier. And that’s still a far cry from property prices in major cities like London, where young people – despite the inevitable financial burdens –  are flocking to find jobs.

Given recent crackdowns by companies on a return-to-the-office, remote working is also quickly becoming a pipe-dream for many young professionals, who could otherwise move away from the city in order to save.

To address the housing crisis, there must be a collective effort to reform policies and create a more inclusive and accessible housing market.

This involves tackling the root causes of skyrocketing property prices, investing in affordable housing initiatives, and implementing measures to support those struggling with the economic fallout of the pandemic.

Rohit Kohli, director at advisers The Mortgage Stop, said: ‘This is another case of an out-of-touch overpaid banker not recognising the actual economic situation that millions of people in this country are facing every day.’

‘It’s not just what has happened over the last couple of years but has been a systemic problem for over a decade with house prices booming whilst wages stay flat.’

Dismissing the housing crisis as an easily surmountable obstacle only perpetuates a cycle of misinformation and magnifies the systemic issues that have led us to this point in the first place.