What is the "housing crisis?
Housing crisis refers to the NHF is a growing realization that the generation who had previously been considering buying property in the housing market has been locked out due to difficult credit conditions and the inability of those deposits. It is predicted that if current trends are allowed to continue without serious government action home ownership will fall to as low as 63.8% over the next decade (it is currently 67%). Further increase in the price of rented accommodation and housing prices could increase by 21% over the next five years, as the market improves, more young people pushing the real estate market.
How the government proposes to solve the housing crisis?
It seems that the government's response to these findings is to convince the public that it will increase the supply of housing, home prices should ease as well as to increase the availability of rented accommodation and landlords to stop having a monopoly that they currently enjoy. Grant Shapps, the housing minister, has already proposed an affordable housing plan, which will contribute to the construction industry to get back on your feet £ 4.5 billion investment. These plans Shapps announced the release of state land must be available for construction. On top of the draft National Master Plan Framework is a step in the right direction, which should facilitate the planning application process, encourage development and thus increase the supply of housing.
Is the government sufficient to solve the problems of housing sector in the UK?
Despite these measures, the government has been criticized for not doing enough, has noted that even this increase is building, new builds still 63% less than the previous government's housing program. In addition to building a house in Britain is the lowest since the 1923rd There is a problem in an underdeveloped country, do not have planning permission and unsold homes on the market due to lack of demand and difficulty in mortgages.
Does the emphasis on increasing housing supply to help first-time buyers?
Undersupply is clearly not the only problem for first time buyers can not save a deposit, they will struggle to even pay the rent. This means that the focus on construction and housing is limited to the financial difficulties of the young is considered a success. Senior Government Purchase Plan should help some potential buyers, which plowed into a £ 250m helping 10,000 young people buying their first property, although it is still a relatively small part of a whole generation of trouble.
Many young people have accepted this shift in ideals that home ownership is no longer a priority, although it is clear that this may be inevitable to accept the truth, rather than a decision. The British government has promised to help financially struggling generation to become the property of their efforts, but whether the measures proposed are sufficient, only time will tell.
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