The UK's Housing Crisis: A Closer Look at the Challenges and Solutions - Granite Building Warranties

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The United Kingdom is currently grappling with a significant housing crisis, a situation where a substantial segment of our population lacks access to safe, suitable, and affordable housing. The government’s ambitious target of constructing 300,000 homes annually remains unmet, leaving many to question the root causes and potential solutions to this pressing issue.

Autumn budget pledged 180,000 new and affordable homes annually, however the real figure is in excess of 300,000 homes.

Underlying Causes of the Housing Shortage

Limited Supply of Homes: One of the principal reasons for the housing crisis is the acute shortage of housing. Despite the government’s commitment to building new homes, there’s a marked discrepancy between the number of houses available and the growing demand. This imbalance has escalated house prices and rental costs.

Population Growth: The UK has experienced a steady increase in population over the past decades, intensifying the demand for housing.

Affordability Issues: The high cost of housing, an increase of 34% since targets announced in 2017 compounded by the living cost crisis, has made it increasingly difficult for individuals and families to afford suitable housing. There is a need to build the right sort of houses.

Diminishing Social Housing: The availability of social housing, which offers affordable accommodation to those in need, has declined over the years.

The Impact of the Buy-to-Let Market: The trend of purchasing properties for rental purposes has reduced the number of homes available for purchase, thereby inflating prices and placing additional hurdles for first-time buyers. But many landlords are currently selling up which increases the stock for buyers but puts more pressure on rental market.
Regional Disparities: The crisis is more acute in densely populated areas and cities where job opportunities and economic growth have led to higher housing costs.


The current planning system is out of date and under resourced. An urgent overhaul is required to speed up the planning process, which will allow sites to move forward more quickly.


There remains a shortage of skilled trades to build the houses due to Brexit and Covid.

Government’s Challenges in Meeting Housing Targets

The government’s aspiration to build 300,000 homes annually has been declared unachievable by industry experts. Policy changes, including making local housing targets advisory, have led to a projected decline in annual housebuilding. Additionally, only 40% of local planning authorities have up-to-date local plans, with debates over housing numbers causing further delays.

Granite Building Warranties’ Perspective on Solutions

At Granite Building Warranties Ltd, we believe addressing this crisis requires a multifaceted approach:

  • Planning: Improving the planning process, reducing the timeline and incentivising development on underutilised land.
  • Improving Renting Conditions: Implementing stricter regulations for rental properties and enhancing tenant rights. However, this can cause reduction in rental properties as landlords are fed up with increasing regulations and decide sell up.
  • Focusing on Sustainable Housing: Promoting environmentally friendly construction and innovative housing solutions.
  • Prioritising Affordable Housing: Increasing public and private funding for affordable and social housing projects.
  • New Construction Methods: Encouraging construction methods that ill speed up the build process.
  • New Towns/Settlements: Government needs to identify new areas for substantial developments, such as Cambourne and North Stow in Cambridgeshire.
  • Affordability and help for First Time Buyers: Now that Help to Buy is no longer available the Government needs to introduce a new scheme to support first time buyers.

Granite Building Warranties are specialist independent brokers of building warranties for the construction industry and for a quote or further information please contact Ed or Kelly on Tel: 01284 365345 or email /

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