London Daily

Focus on the big picture.
Tuesday, Jan 27, 2026

The private housing sector is failing to meet social need

The private housing sector is failing to meet social need

AS THE temporary coronavirus crisis ban on evictions comes to an end, the government is facing demands for immediate action to halt the tsunami of homelessness that threatens one in five private renters.
A variety of factors intervene to make this particular crisis worse than the routine human disasters which attend the normal working of Britain’s dysfunctional housing set-up.

First up, an enormous backlog of rent arrears has built up over the last year. This is no surprise given that millions have been surviving on reduced incomes and that many people are finding that as the furlough subsidies run out, housing insecurity is added to their precarious work situation.

Second, the starting point for this particular stage in the housing crisis is grounded in the uncomfortable truth that one in four renters in the private housing sector entered this crisis already mired in poverty. Half the children living in privately rented housing live below the poverty line.

It is a scandal that in 21st-century Britain — in the fifth richest economy in the world — millions of families face the choice of skimping on food and fuel or paying rent.

Deep-seated structural factors make the housing situation a nightmare for any working family that cannot access cash or credit.

Britain’s housing crisis is rooted in the capitalist system itself and in the peculiar turn that British capital has taken in which a highly financialised speculative economy has ballooned into a permanent pressure for instability and housing shortage.

Despite the Tory attempts — some successful — to place the blame for the 2008 financial crisis on excessive public spending, the real root for the collapse, the profligate lending by US banks “secured” on unsustainable valuations on dodgy “subprime” property that fed directly into our economy, tells us much about the workings of the housing market.

Every landlord, whether they are a small scale buy-to-let speculator paying for their own housing by renting out, or a big corporation hoovering up ex-council housing stock, or an investment business banging up apartment blocks in inner-city sites, or a builder covering the countryside with “executive homes” for people fleeing the cities – they all know that shortage is what drives up prices and rents.

Official figures suggest Britain needs well over 300,000 new homes every year just to meet the normal growth in population and the kind of demographic changes which flow from the routine operation of a developed economy.

But even if this figure were to be achieved it would not meet the backlog.

The simple fact is that, as in so many areas of modern life, the private sector cannot meet social need.

Meeting the simple demand that everyone have a roof over their head and a secure place to call home has proved beyond the capacity of the capitalist system.

Controls on capital is the bedrock solution to the kind of planning that is needed to solve so many problems.

There are a million-plus people on council housing waiting lists. A massive investment in public housing coupled with extra powers to local authorities to unlock capital, regulate rents and housing quality standards, acquire vacant property and drive down housing costs is needed.

Every expert, from select committee to Shelter, knows what is needed. It is the political system held hostage to private ownership and profit that stands in the way.

If workable solutions to the systemic crisis of housing cannot be found within the framework of society as it is presently organised, then the question arises, where can we gather the forces, the ideas and the people to make the necessary changes?
Newsletter

Related Articles

0:00
0:00
Close
UK Banks Pledge £11 Billion Lending Package to Help Firms Expand Overseas
Suella Braverman Defects to Reform UK, Accusing Conservatives of Betrayal on Core Policies
Melania Trump Documentary Sees Limited Box Office Traction in UK Cinemas
Meta and EssilorLuxottica Ray-Ban Smart Glasses and the Non-Consensual Public Recording Economy
WhatsApp Develops New Meta AI Features to Enhance User Control
Germany Considers Gold Reserves Amidst Rising Tensions with the U.S.
Michael Schumacher Shows Significant Improvement in Health Status
Greenland’s NATO Stress Test: Coercion, Credibility, and the New Arctic Bargaining Game
Diego Garcia and the Chagos Dispute: When Decolonization Collides With Alliance Power
Trump Claims “Total” U.S. Access to Greenland as NATO Weighs Arctic Basing Rights and Deterrence
Air France and KLM Suspend Multiple Middle East Routes as Regional Tensions Disrupt Aviation
U.S. winter storm triggers 13,000-plus flight cancellations and 160,000 power outages
Poland delays euro adoption as Domański cites $1tn economy and zloty advantage
White House: Trump warns Canada of 100% tariff if Carney finalizes China trade deal
PLA opens CMC probe of Zhang Youxia, Liu Zhenli over Xi authority and discipline violations
ICE and DHS immigration raids in Minneapolis: the use-of-force accountability crisis in mass deportation enforcement
UK’s Starmer and Trump Agree on Urgent Need to Bolster Arctic Security
Starmer Breaks Diplomatic Restraint With Firm Rebuke of Trump, Seizing Chance to Advocate for Europe
UK Finance Minister Reeves to Join Starmer on China Visit to Bolster Trade and Economic Ties
Prince Harry Says Sacrifices of NATO Forces in Afghanistan Deserve ‘Respect’ After Trump Remarks
Barron Trump Emerges as Key Remote Witness in UK Assault and Rape Trial
Nigel Farage Attended Davos 2026 Using HP Trust Delegate Pass Linked to Sasan Ghandehari
Gold Jumps More Than 8% in a Week as the Dollar Slides Amid Greenland Tariff Dispute
BlackRock Executive Rick Rieder Emerges as Leading Contender to Succeed Jerome Powell as Fed Chair
Boston Dynamics Atlas humanoid robot and LG CLOiD home robot: the platform lock-in fight to control Physical AI
United States under President Donald Trump completes withdrawal from the World Health Organization: health sovereignty versus global outbreak early-warning access
FBI and U.S. prosecutors vs Ryan Wedding’s transnational cocaine-smuggling network: the fight over witness-killing and cross-border enforcement
Trump Administration’s Iran Military Buildup and Sanctions Campaign Puts Deterrence Credibility on the Line
Apple and OpenAI Chase Screenless AI Wearables as the Post-iPhone Interface Battle Heats Up
Tech Brief: AI Compute, Chips, and Platform Power Moves Driving Today’s Market Narrative
NATO’s Stress Test Under Trump: Alliance Credibility, Burden-Sharing, and the Fight Over Strategic Territory
OpenAI’s Money Problem: Explosive Growth, Even Faster Costs, and a Race to Stay Ahead
Trump Reverses Course and Criticises UK-Mauritius Chagos Islands Agreement
Elizabeth Hurley Tells UK Court of ‘Brutal’ Invasion of Privacy in Phone Hacking Case
UK Bond Yields Climb as Report Fuels Speculation Over Andy Burnham’s Return to Parliament
America’s Venezuela Oil Grip Meets China’s Demand: Market Power, Legal Shockwaves, and the New Rules of Energy Leverage
TikTok’s U.S. Escape Plan: National Security Firewall or Political Theater With a Price Tag?
Trump’s Board of Peace: Breakthrough Diplomacy or a Hostile Takeover of Global Order?
Trump’s Board of Peace: Breakthrough Diplomacy or a Hostile Takeover of Global Order?
The Greenland Gambit: Economic Genius or Political Farce?
The Greenland Gambit: Economic Genius or Political Farce?
The Greenland Gambit: Economic Genius or Political Farce?
Will AI Finally Make Blue-Collar Workers Rich—or Is This Just Elite Tech Spin?
Prince William to Make Official Visit to Saudi Arabia in February
Prince Harry Breaks Down in London Court, Says UK Tabloids Have Made Meghan Markle’s Life ‘Absolute Misery’
Malin + Goetz UK Business Enters Administration, All Stores Close
EU and UK Reject Trump’s Greenland-Linked Tariff Threats and Pledge Unified Response
UK Deepfake Crackdown Puts Intense Pressure on Musk’s Grok AI After Surge in Non-Consensual Explicit Images
Prince Harry Becomes Emotional in London Court, Invokes Memory of Princess Diana in Testimony Against UK Tabloids
UK Inflation Rises Unexpectedly but Interest Rate Cuts Still Seen as Likely
×