Significant reform required to improve UK's 'failing' housing system - report

The UK housing system is 'failing' and needs significant reform to improve the situation, according to a new report published today.

The report, The Future of Housing, produced by the Building and Social Housing Foundation (BSHF), will be launched at a House of Lords event this afternoon and is the outcome of a consultation event held in June at St George’s House, Windsor Castle.

The consultation, which was chaired by housing expert Lord Richard Best OBE, involved representatives from national public bodies, local government, academia, charities and organisations from the housing and finance industries1.

According to the report, there are various failings in the UK housing system including its negative impact on the wider UK economy, the increasing unaffordability of housing, the failure of housing supply to respond to demand, and the unsuitability of housing stock for current and future needs.

The BSHF report states that the housing system "has become increasingly flawed and now has significant dysfunctional components". It identifies eight key areas that require urgent attention and provides a wide range of ideas about how the failings can be addressed. 

Lord Richard Best, who chaired the consultation, said: "Twenty-five years ago, I was invited by the Duke of Edinburgh to co-ordinate an inquiry into British housing.

"Over the last two years there has been a dramatic upheaval in our housing and financial systems, demonstrating the urgent need to review the state of our housing system and how we can change it.

"I hope this report encourages people, organisations and the government to take bold steps to overhaul our dysfunctional housing system."

One of the eight key areas discussed in the report is the retrofitting of housing stock to reduce carbon emissions.

"Ensuring that both our new and existing homes have minimal energy requirements is an urgent priority. This will be vital if we are to achieve the government target of an 80 per cent reduction in carbon emissions by 2050," states the report.

A mass programme of retrofitting would also help tackle fuel poverty, improve health and would create new jobs. The BSHF report proposes various ways of encouraging people to retrofit their homes. One idea put forward is to set up a loan programme where loan repayments are offset against decreased energy costs.

Conservative MP Grant Shapps, Shadow Minister for Housing, welcomed the report and said the Conservative Party were committed to retrofitting housing stock to reduce carbon emissions.

"I welcome the launch of BSHF's report, which both highlights the problems in the current UK housing system and provides a number of interesting ideas for solving them," said Shapps.

"BSHF are right to highlight as one of the key areas for action the need for existing housing stock to be retrofitted to reduce carbon emissions, and this is something the Conservatives are committed to doing."

Other key areas of focus outlined in The Future of Housing report include reforming the taxation system, addressing house price volatility, and increasing the range of housing producers.