London Daily

Focus on the big picture.
Friday, Jul 17, 2026

The housing market may be booming for a fortunate few, but the have-nots of Britain are still being left way behind

The housing market may be booming for a fortunate few, but the have-nots of Britain are still being left way behind

High earners and those with wealthy parents, aided and abetted by government schemes only designed to make the economy ‘look’ good, are forcing up house prices for the rest. After Covid, housing is the next crisis on the horizon.

Today I received an email from one of the UK’s leading estate agents for high value properties. I like to know what they are all up to, so I subscribe to all of their sites. On opening the message titled ‘The Outlook is Sunny’ I was informed of how positive the housing market is with strong levels of demand, 52% higher than this time in 2019, and told sellers should really take advantage of this good news.

I’m one of the millions who privately rent and, as a middle-aged single woman, there is no chance of me ever getting a mortgage and owning a home. I equally have no chance of renting a council property thanks to Margaret Thatcher’s very popular and vote winning policy 40 years ago ‘Right to Buy’. This involved selling off council houses and not replacing them because a home owning democracy would be a ‘better’ society. Which is true, if by ‘better’ you mean more compliant and in hock to the bank with mortgages for the bulk of their lives – the emphasis since 1979 has been on buying property and using it as capital rather than a home.

The consequences of ‘Right to Buy’ in 2021 are that: in the middle of a pandemic, with millions furloughed, unsure of their fate and an increasing dole queue thanks to entire industries disappearing; the housing market is also now blowing up. But the “outlook” is only “sunny” for those who have stable well-paid work and large deposits or access to the ‘bank of mum and dad’. These are the only people with any hope of being part of that fabled home owning democracy.

The truth is housing has always been the great class divide in Britain – a lever that all politicians like to pull when they need votes. Heating up the housing market virtually guarantees a bounce to the economy by making those not on the property ladder panicky about getting on it at any cost, even taking out mortgages they can barely afford on properties that simply aren’t objectively worth it. For example, a standard two bedroom flat in Newham in East London according to Rightmove costs around £455,000. That is pie in the sky for most families, not a realistic hope of owning a home.

All this just adds to the misery that is this hellish new decade. The hope millions have of being able to live in an affordable and safe community simply does not exist. Last year when the Chancellor of the Exchequer Rishi Sunak was putting financial packages together to support the economy, like every chancellor before him he cynically used the housing market to hoover up votes from the hopelessly aspirational and, of course, the middle class. No attempt was made to tackle the realities of a housing system that has been smashed for more than four decades.

The stamp duty holiday that the chancellor gave in 2020 on the first £500,000 of a property has been extended by three months in England, Northern Ireland and Wales but ended on March 31 in Scotland – with the think tank Policy Exchange calling for the temporary measures taken in relation to stamp duty and ‘Help to Buy’ schemes to become permanently funded by the taxpayer.

This is problematic in every way imaginable. Heating up the housing market based on a broken supply and demand system while doing nothing about the real issue (the lack of safe, affordable homes for everyone) leads to bubbles forming. Passing around borrowed money while the rest of the economy is shaking will only lead to one place and that is back to 2008. Do we really want to go back to dodgy subprime mortgages being sold to people that can’t afford the repayments on properties that have been artificially inflated by the market meaning the bricks and mortar is nowhere near equal to the debt? Thirteen years ago, this meant millions of mostly working class American families found themselves homeless and in debt, but because of the global nature of markets and the banking industry billions of working class people all over the world found themselves paying for the vast bailouts governments doled out to prop up the global banking industry after it gambled and lost.

We are almost a generation on since the last global crash – yet it seems no lessons have been learned. While in the UK the property market has been stable and in fact growing since 2010, that is because buy to let landlords have been filling the gaps the housing market left. Just 17% of our UK housing stock is socially owned – for all but the very lucky who have managed to get into a social home – the majority of lower earners live in inflated private rental properties.

In the last year since the first lockdown it is estimated by the Resolution Foundation that almost half a million families have fallen behind with their rent as a result of the coronavirus crisis. With the only government guidance being “to negotiate lowering rent,” the housing crisis, which has been at breaking point for many years is about to get crazily unstable. When any society has been through trauma, providing safe homes should be any government's first priority. Without a safe home, we have nothing.

After the Second World War both the Tory and the Labour parties committed to building mass social housing, in 2021 none of our politicians are talking about homes for the less well off. Why isn’t this top of the agenda again now?

Having a home somewhere safe to live as a base to get on with the rest of your life is fundamental, the Five Giants that William Beveridge set out to slay in 1942 as he introduced the idea of a Welfare State: Want, Disease, Ignorance, Squalor and Idleness, are again wide awake and making discomforting noises.

Disease has already reared its ugly head again and the world has learned the hard way over the last 12 months that a society without good healthcare for everyone is a false economy. Squalor won’t be far behind if we do not soon realise the same about housing.

Newsletter

Related Articles

0:00
0:00
Close
For 36 Years, He Scammed About 300 Luxury Hotels — Until He Was Caught
Britain Nationalises British Steel to Protect Scunthorpe Production and Strategic Supply
Andy Burnham Takes Labour Leadership and Prepares to Become Britain’s Seventh Prime Minister in a Decade
Tech Companies Want to Move Computing Off Your Screen and Onto Your Body
White House Teleprompter Operator Earned More Than $100,000 From Bets Linked to the President's Speeches
French Prime Minister Survives No-Confidence Vote After Controversial Budget Cuts
European Commission Opens Excessive Deficit Procedure Against France
French Senate Blocks Key Immigration Reform Measures
French Government Pushes EU Action Against Ultra-Fast Fashion Imports
French Parliament Debates Expanded Autonomy Powers for Corsica
France Reopens Autonomy Talks With New Caledonia After Months of Unrest
Bordeaux Wine Producers Seek Three Hundred Million Euro Aid Package After Export Collapse
French Farmers Block Spain Border Crossings Over Imported Food Competition
Cannes Film Festival Bans Fully Artificial Intelligence-Generated Films From Competition
TotalEnergies Shifts More Than Three Billion Euros of Green Investment From Europe to the United States
LVMH Chief Executive Bernard Arnault Presents Succession Plan for Luxury Empire
Kering Reports Fifteen Percent Revenue Drop as Chinese Luxury Demand Weakens
Sanofi Reports Positive Results From Messenger RNA Respiratory Vaccine Trials
France Places Energy Price Caps Under Review to Protect Households Through Winter
EDF Connects Two New Nuclear Reactors to France’s Electricity Grid
Mistral Secures European Commission Contract for Sovereign Artificial Intelligence Models
Renault Opens Next-Generation Electric Battery Plant in Northern France
Air France Signs Two Billion Euro Sustainable Aviation Fuel Deal to Cut Emissions
Marseille Launches Three Billion Euro Port Expansion to Strengthen Mediterranean Trade Role
French-Owned Ubisoft Announces Global Restructuring With Nearly One Thousand Job Cuts
National Railway Operator Suspends Artificial Intelligence Ticket Pricing System After Consumer Backlash
United Kingdom to Ban Sales of High-Caffeine Energy Drinks to Under-Sixteens
Home Office Designates Iranian and Russian Paramilitary Groups as National Security Threats
National Health Service Launches Housing Plan to Retain London Healthcare Workers
British Heatwave Fuels Wildfires and Emergency Evacuations in Scotland
United Kingdom and Estonia Sign Defence Agreement to Strengthen NATO’s Eastern Flank
United Kingdom Cuts Bilateral Aid to African Nations by More Than Eighty Percent
Bank of England Overhauls Banking Rules to Encourage More Lending to Businesses
United Kingdom and India Free Trade Agreement Enters Into Force, Reshaping Bilateral Economic Ties
Andy Burnham Confirmed as New Labour Leader and Prime Minister-Designate
UK Government Faces Pressure Over Extreme Heat Workplace Rules
Lewisham Council Blocks Cooperation With Home Office Immigration Enforcement
UK Parliament Investigates Growing Pressures on Scotch Whisky Industry
Teen Hackers Sentenced Over Thirty-Nine Million Pound Transport for London Cyber Attack
Ministry of Defence Acquires Scottish Fuel Terminal to Strengthen Royal Navy Operations
Bank of England Eases Rules as Economic Growth Remains Weak
Bank of England Governor Warns Andy Burnham on Britain’s Long Economic Stagnation
UK Defence Ministry Buys Scottish Fuel Terminal to Secure Naval Energy Supplies
UK Secures Access to European Defence Contracts Through Ukraine Support Deal
Bank of England Plans Easier Capital Rules to Encourage More Lending
Met Office Says England and Wales Have Already Broken Summer Heat Records
Counter-Terrorism Police Lead Investigation Into Murder of Former Minister Ann Widdecombe
UK Government Nationalises British Steel to Protect Domestic Steel Production
French National Assembly Overrides Senate to Pass Historic Assisted-Dying Legislation
Spanish Prime Minister's Wife Ordered to Stand Trial as Corruption Probes Encircle Governing Party
×