London Daily

Focus on the big picture.
Friday, Jun 26, 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
Robert Jenrick Defends £5 Million Donation to Nigel Farage Amid Political Scrutiny
Plymouth Museum The Box Wins 2026 Art Fund Museum of the Year Award
UK Government Faces Backlash Over Plans to Use Former Military Sites for Asylum Accommodation
Labour Party Faces Pressure Over Cabinet Stability as Senior Figures Clash on Policy Direction
Heathrow Airport Forecasts Passenger Decline in 2026 as Costs and Climate Disruption Mount
UK Energy Regulator Approves Expansion of Long-Duration Storage to Boost Power System Resilience
Crown Estate Reports Third Consecutive Year of £1 Billion Profit as Debate Over Royal Finances Intensifies
Teenager Charged With Murder in Wales Following Death of 14-Year-Old Boy
Nottingham University Hospitals Maternity Failures Trigger Calls for Public Inquiry Into Patient Safety
EasyJet Rejects £4.9 Billion Takeover Offer From Castlelake but Keeps Door Open for Further Talks
Record Heatwave Triggers UK Transport and Infrastructure Strain as Heathrow Revises Passenger Forecast Downward
Ofgem Approves Sixteen Long-Duration Energy Storage Projects to Strengthen UK Grid Stability
Labour Government Faces Internal Tensions Over Cabinet Decisions and Net Zero Policy Direction
British Food and Drink Exports Fall to Decade Low Amid Trade Friction and US Tariffs
Great Britain Grid Operator Spends £10 Million to Stabilize Electricity Supply During Heatwave Demand Surge
UK Parliament Committee Calls for Urgent National Adaptation Strategy as Extreme Heat Strains Public Infrastructure
Record-Breaking Heatwave Pushes England’s National Health Service to Critical Incident Status as Hospitals Struggle With Surge in Emergencies
UK Government Launches Review of Voluntary National Insurance Contributions System
UK Planning Inspectorate Reports Key Infrastructure and Planning Milestones in Annual Review
UK Government Reviews Travel Expense Reimbursement Rates for Employers and Employees
Civil Nuclear Constabulary Launches National Digital Memorial for Officers Killed in Service
UK and US Expand Collaboration on Nuclear Fusion Research and Workforce Exchange
Environment Agency Secures £275,000 Enforcement Deal with Anglian Water Over Permit Breaches
Independent Inspector Flags Ongoing Failures in UK Home Office Border Case Management
UK Government Considers Zero VAT Rate on Land for Social Housing Development
Bank of England Reports Sharp Drop in Emissions and Warns on Climate-Driven Financial Risk
Consumer Confidence in the UK Falls at Fastest Quarterly Rate Since 2022
UK Borrowing Costs Rise Sharply on Gilt Markets Amid Fiscal and Political Concerns
UK Government Plans Legislation to Bring British Steel into Public Ownership
UK Government Secures £210 Million Nuclear Fuel Deal to Support Ukraine Energy Security
London Ambulance Service Reports Record Emergency Call Volume Amid Severe Heatwave
United Kingdom Faces Record June Heatwave as Temperatures Hit 36.7°C in Somerset
UK Financial Services Reform Debate Intensifies Over Ministerial Regulatory Powers
UK Energy Price Cap Rise Expected to Keep Inflation Above Target Through 2026
UK Biohacking and AI Wellness Trends Drive Surge in Personal Health Monitoring
UK Social Care Sector Sees Workforce Shift as Overseas Recruitment Masks Domestic Labour Decline
Nuffield Trust Warns UK Health Budgets Remain Vulnerable Despite Record Spending Levels
UK Coal Pension Surplus Debate Returns to Parliament as Reform UK MP Seeks Clarity on Distribution
UK MPs Consider E-Petition Calling for NHS Newborn Screening for Spinal Muscular Atrophy
UK Parliament Debates E-Petition Calling for Inquiry Into Pro-Israel Influence in Politics
UK Economy Grew 0.6 Percent in Q1 2026 but Business Sentiment Weakens Over Geopolitical Risks
UK Financial Services Bill Enters Lords Committee Stage With Expanded Ministerial Powers
UK Armed Forces Bill Advances With Plans for Defence Housing Service and Drone Defence Measures
UK Treasury Proposes Higher Electricity Generator Levy and Updated Mileage Allowance Rules
UK Parliament Debates Health Bill Amid Persistent GP Access and Patient Satisfaction Concerns
UK Financial Sanctions Regulator Signals Faster, Intelligence-Led Enforcement Strategy
British Chambers of Commerce Warns Business Confidence Crisis Is Dampening UK Investment
UK Parliament Debates Carbon Budget Order as Pressure Mounts on Net Zero Delivery
UK Energy Price Volatility Reinforces Pressure for Faster Electrification of Economy
UK Defence and Aerospace Strategy Gains Momentum as Keir Starmer Pushes Industrial Cooperation in Berlin
×