UK homebuyers getting poor value for money
The UK’s “expensive, cramped and ageing” housing stock fares poorly compared with other advanced countries, analysis by a think tank suggests.
Tenants, homeowners and homebuyers are paying more than other countries – but getting less in return, the Resolution Foundation said.
Its report said: “When it comes to housing, UK households are getting an inferior product in terms of both quantity and quality.”
The Foundation’s housing outlook used OCED data to compare the UK’s housing issues against other similar economies. It said that while there is “limited crossnational data” on floor space, homes in England have less average floor space per person (38 m2) than many similar countries, including the United States (66 m2), Germany (46 m2), France (43 m2) and Japan (40 m2).
The UK’s housing stock is also relatively old, with 38 per cent of homes built before 1946, the report said, compared with around a fifth (21 per cent) in Italy and one in nine (11 per cent) in Spain.
Older homes can be poorly insulated, leading to higher energy bills and a higher risk of damp, according to the Foundation, which is focused on improving the living standards for those on low to middle incomes.
Researchers also considered what it would cost to rent all homes – incorporating what owners would pay if they rented their home at market rates – to show how the market price of housing varies across different countries.
The report said: “If all households in the UK were fully exposed to our housing market, they would have to devote 22 per cent of their spending to housing services, far higher than the OECD average (17 per cent).”
Adam Corlett, principal economist at the Resolution Foundation, said: “By looking at housing costs, floorspace and wider issues of quality, we find that the UK’s expensive, cramped and ageing housing stock offers the worst value for money of any advanced economy.”
“The UK’s expensive, cramped and ageing housing stock offers the worst value for money of any advanced economy