Reducing the cost of building houses: A vital step towards solving the housing crisis

The housing shortage and cost crisis has become an increasingly pressing issue, leaving many individuals, particularly the younger generation, unable to fulfil their dreams of homeownership. While building more houses is undoubtedly necessary, it alone cannot effectively address the root causes of the problem. To truly tackle the crisis, a shift in policy focus is needed—one that prioritises reducing the cost of building houses. This article explores the potential solutions to make housing more affordable, ranging from innovative construction methods to reimagining land ownership structures.

The escalating cost gap

The stark disparity between housing prices and stagnant wages has placed the dream of homeownership further out of reach for many. Over the past few decades, the average house prices in England have skyrocketed, while salaries have failed to keep pace. For instance, in 1979, the average London home cost just £31,370, whereas at the beginning of this year, the average had risen to a staggering £309,100. This disparity is a clear indication that building more houses alone will not solve the crisis. For context, in 2000, the average home in England was £84,191 which was 3 to 4 times the average salary. People praise Margaret Thatcher for giving people the opportunity to buy their own home but this was only possible because houses were affordable at the time.

Innovative construction methods

To alleviate the housing cost burden, we must explore innovative construction methods that can significantly reduce expenses. One approach involves designing homes that are easy to build or assemble, eliminating the need for excessive specialisation and costly labour. By embracing modular construction techniques, akin to Ikea-style kits produced in factories, the process becomes more efficient, materials can be utilised optimally, and economies of scale can be achieved. This results in substantial cost savings, making homeownership more attainable for a larger portion of society.

Sustainable and cost-effective materials

Another crucial aspect of reducing the cost of building houses lies in the choice of materials. By focusing on sustainable materials that are readily available and affordable to source or produce, we can alleviate the burden on construction costs. Materials like recycled steel, bamboo, and engineered wood not only offer environmental benefits but also provide viable alternatives to traditional and more expensive building materials. Embracing these cost-effective options can lower construction expenses while promoting sustainability—a win-win situation for both prospective homeowners and the planet. Imagine what we can do with all the plastic we constantly complain about.

Revamping land ownership structures

The cost of building land represents a significant portion of the overall housing cost. To address this issue, a fundamental shift in land ownership structures can be implemented. One potential solution involves the government leasing the land on which the property is situated to the property owner for a fixed monthly fee. This innovative approach allows the government to generate revenue while reducing the initial investment required for homeownership. Moreover, it enables individuals to focus their financial resources on the actual construction of their homes, making the overall process more affordable.

Government intervention and policy focus

To ensure the successful implementation of these solutions, it is essential for the government to change its policy focus from solely building more houses to reducing the cost of building houses. While constructing additional homes is undoubtedly important, it must be complemented by initiatives that address the underlying affordability issue. By prioritising the development of sustainable and cost-effective construction methods, promoting the use of affordable materials, and revamping land ownership structures, the government can effectively alleviate the burden of housing costs and help young people achieve their homeownership aspirations.

In closing

The housing shortage and cost crisis necessitate a comprehensive approach that extends beyond merely increasing housing stock. By redirecting policy focus towards reducing the cost of building houses, we can bridge the affordability gap and make homeownership a realistic possibility for more individuals. Embracing innovative construction methods, sustainable materials, and reimagined land ownership structures will not only drive down housing costs but also contribute to a more equitable society. It is time for the government to prioritise these solutions and pave the way for a brighter future, where affordable and accessible housing is a reality for all.

By the way, if you hear someone blaming the housing crisis on immigration or the planning system, share a link to the article below with them.

How profit-driven housebuilders worsen UK housing shortage and drive up costs

 

Comparison of average price of all property types Data Source: UK Land Registry

Date United Kingdom Wales Scotland England Northern Ireland
January 1999 £72,903 £49,196 £46,723 £65,766 £61,818
February 1999 £72,903 £48,455 £46,723 £65,522 £61,818
March 1999 £72,903 £47,997 £46,723 £66,378 £61,818
April 1999 £75,995 £49,508 £49,217 £67,648 £60,380
May 1999 £75,995 £49,093 £49,217 £68,402 £60,380
June 1999 £75,995 £49,612 £49,217 £69,428 £60,380
July 1999 £80,443 £50,792 £51,878 £70,612 £63,071
August 1999 £80,443 £50,155 £51,878 £71,699 £63,071
September 1999 £80,443 £51,451 £51,878 £72,816 £63,071
October 1999 £82,504 £51,321 £51,878 £73,273 £62,924
November 1999 £82,504 £52,184 £51,878 £74,234 £62,924
December 1999 £82,504 £51,745 £51,878 £75,071 £62,924
January 2000 £84,620 £52,052 £51,628 £75,219 £66,905
February 2000 £84,620 £52,313 £51,628 £75,630 £66,905
March 2000 £84,620 £52,352 £51,628 £77,016 £66,905
April 2000 £89,230 £53,459 £51,379 £79,635 £67,937
May 2000 £89,230 £53,602 £51,379 £80,348 £67,937
June 2000 £89,230 £53,437 £51,379 £81,269 £67,937
July 2000 £90,912 £54,713 £51,711 £82,563 £68,564
August 2000 £90,912 £54,691 £51,711 £83,504 £68,564
September 2000 £90,912 £55,447 £51,711 £83,590 £68,564
October 2000 £93,624 £54,882 £51,628 £83,261 £74,425
November 2000 £93,624 £55,493 £51,628 £83,546 £74,425
December 2000 £93,624 £55,425 £51,628 £84,191 £74,425
January 2001 £93,136 £54,482 £54,122 £84,377 £81,797
February 2001 £93,136 £55,438 £54,122 £84,245 £81,797
March 2001 £93,136 £56,080 £54,122 £85,242 £81,797
April 2001 £96,499 £56,862 £52,751 £87,439 £75,346
May 2001 £96,499 £58,165 £52,751 £88,719 £75,346
June 2001 £96,499 £58,758 £52,751 £89,980 £75,346
July 2001 £99,971 £60,011 £54,247 £91,430 £79,254
August 2001 £99,971 £60,485 £54,247 £93,331 £79,254
September 2001 £99,971 £60,603 £54,247 £93,682 £79,254
October 2001 £97,964 £59,933 £54,663 £94,161 £72,323
November 2001 £97,964 £61,674 £54,663 £95,083 £72,323
December 2001 £97,964 £61,414 £54,663 £95,992 £72,323
January 2002 £97,623 £61,728 £53,649 £96,215 £73,164
February 2002 £101,164 £61,800 £55,827 £96,676 £77,668
March 2002 £104,705 £62,346 £58,004 £98,962 £82,173
April 2002 £106,121 £64,757 £58,841 £101,355 £83,882
May 2002 £108,852 £66,117 £60,460 £104,458 £83,960
June 2002 £113,304 £69,416 £62,861 £106,811 £87,144
July 2002 £114,214 £69,871 £63,028 £110,001 £86,600
August 2002 £116,743 £71,935 £63,196 £112,832 £88,154
September 2002 £119,576 £71,827 £64,536 £113,914 £92,037
October 2002 £120,486 £72,935 £63,921 £115,879 £88,076
November 2002 £121,700 £75,445 £64,424 £118,693 £89,008
December 2002 £125,747 £75,309 £66,769 £119,982 £88,930
January 2003 £124,836 £77,798 £64,647 £121,610 £91,027
February 2003 £123,521 £78,551 £60,181 £121,754 £90,328
March 2003 £126,152 £79,272 £63,698 £123,258 £89,396
April 2003 £129,186 £82,645 £67,494 £126,239 £94,756
May 2003 £128,276 £83,912 £67,550 £128,299 £90,328
June 2003 £128,579 £85,523 £68,611 £129,353 £93,513
July 2003 £130,805 £88,079 £71,067 £132,318 £90,561
August 2003 £133,132 £91,168 £73,077 £133,896 £95,610
September 2003 £132,727 £91,939 £72,854 £133,848 £92,814
October 2003 £135,054 £92,705 £75,812 £135,885 £95,532
November 2003 £133,536 £94,460 £74,808 £137,178 £92,037
December 2003 £136,167 £97,720 £77,097 £138,985 £93,901
January 2004 £136,976 £98,912 £79,665 £139,719 £96,620
February 2004 £135,661 £100,098 £78,608 £140,284 £96,231
March 2004 £135,964 £100,993 £81,490 £142,571 £96,231
April 2004 £142,135 £107,423 £86,898 £147,250 £99,882
May 2004 £143,855 £108,036 £88,345 £150,115 £102,833
June 2004 £146,384 £113,693 £92,640 £153,527 £99,493
July 2004 £149,520 £117,454 £94,862 £156,730 £103,610
August 2004 £151,240 £120,836 £94,845 £158,760 £106,095
September 2004 £150,937 £119,393 £93,354 £159,243 £105,163
October 2004 £152,050 £120,591 £95,096 £159,358 £108,348
November 2004 £151,847 £122,885 £94,700 £160,330 £104,464
December 2004 £150,734 £122,005 £96,976 £159,886 £108,969
January 2005 £150,633 £123,815 £93,982 £158,572 £111,920
February 2005 £150,488 £121,070 £93,554 £158,609 £111,920
March 2005 £151,723 £123,052 £96,638 £159,642 £111,920
April 2005 £153,880 £124,088 £102,739 £161,336 £116,004
May 2005 £155,533 £126,541 £103,815 £163,064 £116,004
June 2005 £156,767 £127,477 £107,989 £164,069 £116,004
July 2005 £158,786 £130,529 £110,003 £165,756 £123,386
August 2005 £159,431 £131,874 £110,101 £166,440 £123,386
September 2005 £159,183 £131,307 £110,188 £166,168 £123,386
October 2005 £158,865 £131,511 £109,598 £165,637 £127,674
November 2005 £159,337 £130,826 £108,994 £166,303 £127,674
December 2005 £160,209 £129,673 £110,714 £167,244 £127,674
January 2006 £159,970 £129,914 £109,380 £166,544 £131,302
February 2006 £160,231 £132,218 £107,355 £166,896 £131,302
March 2006 £161,531 £133,581 £111,484 £168,001 £131,302
April 2006 £165,042 £134,018 £116,209 £171,129 £143,918
May 2006 £166,606 £135,043 £118,876 £172,699 £143,918
June 2006 £168,184 £138,538 £120,454 £174,231 £143,918
July 2006 £170,604 £138,355 £122,702 £176,164 £160,529
August 2006 £172,037 £140,227 £124,427 £177,603 £160,529
September 2006 £172,738 £140,180 £126,392 £178,275 £160,529
October 2006 £173,750 £139,801 £123,482 £178,927 £179,841
November 2006 £174,644 £141,553 £125,396 £179,718 £179,841
December 2006 £176,819 £142,521 £127,707 £182,031 £179,841
January 2007 £176,758 £139,760 £126,699 £181,824 £198,950
February 2007 £177,261 £143,455 £124,280 £182,397 £198,950
March 2007 £178,636 £141,453 £129,092 £183,712 £198,950
April 2007 £182,243 £144,844 £135,581 £186,711 £216,751
May 2007 £184,330 £145,951 £138,765 £188,814 £216,751
June 2007 £186,348 £147,402 £141,897 £190,822 £216,751
July 2007 £188,691 £147,245 £141,815 £193,360 £224,670
August 2007 £189,786 £150,316 £143,287 £194,328 £224,670
September 2007 £190,032 £149,164 £142,294 £194,764 £224,670
October 2007 £189,589 £149,825 £139,547 £194,700 £214,269
November 2007 £189,489 £148,509 £141,524 £194,502 £214,269
December 2007 £189,193 £147,362 £139,736 £194,373 £214,269
January 2008 £185,782 £146,364 £138,388 £191,750 £198,362
February 2008 £184,185 £144,636 £137,508 £190,066 £198,362
March 2008 £182,845 £141,503 £137,848 £188,657 £198,362
April 2008 £183,148 £141,804 £139,328 £189,115 £185,845
May 2008 £184,267 £142,749 £145,641 £189,777 £185,845
June 2008 £181,831 £141,876 £141,555 £187,350 £185,845
July 2008 £179,845 £137,901 £139,710 £185,844 £168,076
August 2008 £176,092 £139,660 £137,784 £181,494 £168,076
September 2008 £171,660 £132,625 £132,420 £177,232 £168,076
October 2008 £168,177 £133,991 £133,839 £173,249 £153,774
November 2008 £163,447 £131,304 £129,820 £168,230 £153,774
December 2008 £160,954 £129,403 £125,767 £165,795 £153,774
January 2009 £157,234 £125,021 £124,484 £162,673 £140,190
February 2009 £155,417 £124,029 £120,994 £160,956 £140,190
March 2009 £154,452 £123,104 £125,727 £159,340 £140,190
April 2009 £155,852 £125,355 £126,975 £160,701 £141,489
May 2009 £158,004 £127,350 £130,699 £162,740 £141,489
June 2009 £159,561 £125,948 £132,049 £164,536 £141,489
July 2009 £162,423 £128,279 £133,126 £167,673 £141,864
August 2009 £164,025 £128,768 £132,658 £169,603 £141,864
September 2009 £165,314 £129,232 £131,727 £171,214 £141,864
October 2009 £166,425 £130,696 £132,914 £172,314 £141,994
November 2009 £166,986 £131,131 £134,183 £172,818 £141,994
December 2009 £168,082 £132,978 £133,037 £174,136 £141,994
January 2010 £167,469 £127,733 £128,973 £174,458 £135,701
February 2010 £167,888 £127,958 £126,524 £175,248 £135,701
March 2010 £167,878 £130,677 £128,897 £174,765 £135,701
April 2010 £170,028 £131,747 £133,162 £176,796 £134,515
May 2010 £170,846 £132,483 £132,977 £177,754 £134,515
June 2010 £171,689 £131,877 £134,249 £178,655 £134,515
July 2010 £173,427 £134,036 £135,444 £180,519 £132,164
August 2010 £173,417 £132,453 £133,825 £180,807 £132,164
September 2010 £172,972 £133,167 £133,756 £180,231 £132,164
October 2010 £171,045 £133,140 £133,750 £178,102 £124,515
November 2010 £169,013 £127,443 £131,509 £176,301 £124,515
December 2010 £168,703 £128,963 £129,758 £176,036 £124,515
January 2011 £167,300 £127,771 £129,746 £174,442 £119,024
February 2011 £166,415 £127,961 £125,916 £173,811 £119,024
March 2011 £165,649 £125,133 £126,172 £173,046 £119,024
April 2011 £168,218 £129,222 £129,848 £175,490 £117,142
May 2011 £167,470 £128,085 £129,832 £174,668 £117,142
June 2011 £167,753 £128,270 £131,209 £174,838 £117,142
July 2011 £169,866 £128,564 £133,429 £177,164 £115,108
August 2011 £169,968 £129,395 £132,518 £177,335 £115,108
September 2011 £169,544 £131,017 £131,949 £176,783 £115,108
October 2011 £167,673 £127,698 £129,122 £175,171 £111,871
November 2011 £167,757 £130,415 £128,206 £175,200 £111,871
December 2011 £167,048 £127,397 £125,924 £174,812 £111,871
January 2012 £165,908 £127,097 £125,728 £174,179 £104,712
February 2012 £165,457 £126,324 £121,886 £174,161 £104,712
March 2012 £165,947 £126,231 £125,412 £174,323 £104,712
April 2012 £167,854 £128,163 £125,134 £176,543 £104,987
May 2012 £168,395 £128,349 £126,455 £177,026 £104,987
June 2012 £170,049 £129,986 £128,361 £178,696 £104,987
July 2012 £170,701 £129,342 £127,491 £179,756 £102,086
August 2012 £170,902 £128,860 £126,734 £180,129 £102,086
September 2012 £170,295 £127,952 £125,823 £179,563 £102,086
October 2012 £169,090 £126,881 £124,617 £178,412 £99,647
November 2012 £169,227 £128,452 £123,166 £178,662 £99,647
December 2012 £168,843 £127,143 £122,180 £178,406 £99,647
January 2013 £167,716 £127,584 £122,594 £176,816 £97,428
February 2013 £167,682 £125,702 £120,180 £177,203 £97,428
March 2013 £168,681 £126,975 £121,357 £178,189 £97,428
April 2013 £170,335 £126,671 £123,409 £179,900 £99,229
May 2013 £171,234 £128,640 £125,358 £180,621 £99,229
June 2013 £172,655 £129,380 £127,118 £182,088 £99,229
July 2013 £174,592 £128,501 £128,421 £184,274 £101,165
August 2013 £175,982 £130,842 £129,781 £185,642 £101,165
September 2013 £176,098 £130,085 £127,777 £186,082 £101,165
October 2013 £175,378 £128,089 £127,413 £185,358 £101,879
November 2013 £176,352 £130,029 £128,629 £186,260 £101,879
December 2013 £177,971 £128,581 £127,018 £188,544 £101,879
January 2014 £178,182 £131,603 £127,007 £188,265 £103,570
February 2014 £178,921 £132,349 £125,034 £189,347 £103,570
March 2014 £179,537 £130,464 £126,650 £190,037 £103,570
April 2014 £183,532 £132,656 £129,596 £194,251 £107,031
May 2014 £185,476 £135,527 £131,677 £196,171 £107,031
June 2014 £187,077 £135,019 £133,444 £197,951 £107,031
July 2014 £189,709 £135,571 £135,161 £200,825 £109,116
August 2014 £191,932 £136,710 £135,575 £203,406 £109,116
September 2014 £192,138 £138,218 £134,807 £203,639 £109,116
October 2014 £191,855 £136,630 £135,016 £203,311 £110,750
November 2014 £191,209 £136,898 £133,334 £202,704 £110,750
December 2014 £191,669 £136,904 £132,669 £203,346 £110,750
January 2015 £190,665 £136,148 £134,956 £202,856 £110,940
February 2015 £190,827 £135,611 £132,572 £203,424 £110,940
March 2015 £191,537 £135,231 £139,792 £203,360 £110,940
April 2015 £193,225 £137,039 £134,030 £205,936 £114,340
May 2015 £195,313 £137,553 £135,678 £208,265 £114,340
June 2015 £196,802 £138,478 £136,923 £209,874 £114,340
July 2015 £200,142 £139,213 £139,051 £213,518 £117,716
August 2015 £201,973 £140,651 £138,564 £215,756 £117,716
September 2015 £202,389 £140,248 £138,246 £216,350 £117,716
October 2015 £202,664 £140,912 £137,660 £216,676 £118,756
November 2015 £204,223 £140,974 £138,475 £218,500 £118,756
December 2015 £204,920 £141,520 £136,702 £219,582 £118,756
January 2016 £205,464 £140,015 £136,790 £220,361 £118,851
February 2016 £205,555 £142,712 £134,625 £220,627 £118,851
March 2016 £207,667 £141,617 £136,243 £222,663 £118,851
April 2016 £208,443 £141,925 £136,446 £223,784 £123,249
May 2016 £210,872 £144,296 £138,256 £226,370 £123,249
June 2016 £212,887 £146,447 £140,234 £228,430 £123,249
July 2016 £215,127 £146,353 £142,294 £230,868 £124,731
August 2016 £215,145 £145,384 £140,881 £231,176 £124,731
September 2016 £214,816 £144,976 £140,533 £230,848 £124,731
October 2016 £214,107 £146,658 £139,631 £229,944 £125,059
November 2016 £215,113 £146,278 £140,852 £231,053 £125,059
December 2016 £215,500 £146,442 £138,206 £231,922 £125,059
January 2017 £215,243 £146,395 £138,356 £231,593 £124,786
February 2017 £215,697 £145,837 £136,011 £232,696 £124,786
March 2017 £215,236 £147,794 £136,891 £231,760 £124,786
April 2017 £218,642 £149,900 £141,091 £235,021 £127,178
May 2017 £219,954 £147,428 £142,070 £236,727 £127,178
June 2017 £221,833 £150,394 £143,634 £238,595 £127,178
July 2017 £224,719 £151,028 £147,566 £241,406 £128,878
August 2017 £225,738 £152,859 £147,234 £242,628 £128,878
September 2017 £224,895 £153,227 £144,530 £242,041 £128,878
October 2017 £225,092 £155,033 £145,058 £242,003 £129,601
November 2017 £224,453 £153,109 £146,350 £241,086 £129,601
December 2017 £225,330 £153,791 £145,235 £242,378 £129,601
January 2018 £224,544 £153,128 £146,889 £241,061 £130,292
February 2018 £225,131 £153,210 £145,982 £241,989 £130,292
March 2018 £223,772 £154,022 £144,655 £240,428 £130,292
April 2018 £225,910 £153,574 £148,427 £242,396 £132,095
May 2018 £226,834 £154,756 £148,621 £243,445 £132,095
June 2018 £228,355 £156,864 £149,960 £244,962 £132,095
July 2018 £231,187 £158,626 £151,777 £247,981 £134,619
August 2018 £231,898 £161,024 £152,138 £248,620 £134,619
September 2018 £231,454 £160,265 £151,446 £248,248 £134,619
October 2018 £231,211 £160,955 £151,528 £247,757 £136,764
November 2018 £230,224 £160,158 £149,556 £246,940 £136,764
December 2018 £229,729 £162,234 £148,269 £246,380 £136,764
January 2019 £228,314 £158,548 £149,769 £244,641 £135,434
February 2019 £227,738 £159,018 £146,892 £244,427 £135,434
March 2019 £227,104 £159,904 £149,625 £242,982 £135,434
April 2019 £228,749 £161,456 £150,794 £244,662 £136,960
May 2019 £229,061 £161,628 £151,417 £244,928 £136,960
June 2019 £230,049 £162,908 £152,680 £245,846 £136,960
July 2019 £232,618 £164,440 £154,776 £248,468 £139,838
August 2019 £233,366 £168,215 £154,195 £249,221 £139,838
September 2019 £233,536 £164,414 £154,874 £249,637 £139,838
October 2019 £232,919 £166,281 £153,953 £248,842 £140,141
November 2019 £232,096 £168,516 £152,528 £247,867 £140,141
December 2019 £231,792 £166,433 £150,287 £248,097 £140,141
January 2020 £231,940 £163,205 £153,518 £247,898 £140,722
February 2020 £230,609 £165,953 £149,582 £246,739 £140,722
March 2020 £232,684 £167,040 £150,625 £249,121 £140,722
April 2020 £230,318 £160,039 £151,779 £246,424 £140,841
May 2020 £231,508 £162,701 £152,914 £247,499 £140,841
June 2020 £234,703 £167,384 £155,329 £250,739 £140,841
July 2020 £236,687 £168,416 £154,582 £253,226 £143,723
August 2020 £238,998 £172,999 £154,707 £255,802 £143,723
September 2020 £241,541 £170,030 £160,585 £258,155 £143,723
October 2020 £243,575 £175,948 £163,019 £259,592 £147,475
November 2020 £246,065 £178,255 £164,032 £262,409 £147,475
December 2020 £247,983 £181,274 £162,375 £264,971 £147,475
January 2021 £249,690 £181,118 £164,940 £266,588 £149,084
February 2021 £249,586 £179,554 £161,847 £267,192 £149,084
March 2021 £253,506 £184,807 £167,913 £270,627 £149,084
April 2021 £250,210 £182,377 £161,814 £267,500 £154,323
May 2021 £251,285 £185,654 £168,589 £267,295 £154,323
June 2021 £265,676 £196,221 £172,341 £284,252 £154,323
July 2021 £252,960 £187,050 £175,659 £267,745 £159,098
August 2021 £260,429 £192,019 £178,076 £276,457 £159,098
September 2021 £269,003 £198,146 £178,865 £286,832 £159,098
October 2021 £263,333 £200,151 £179,557 £279,281 £159,073
November 2021 £267,370 £199,006 £181,578 £284,149 £159,073
December 2021 £268,115 £201,586 £177,057 £285,784 £159,073
January 2022 £272,738 £204,946 £183,157 £290,016 £163,877
February 2022 £272,454 £202,482 £178,491 £290,774 £163,877
March 2022 £273,787 £204,321 £179,517 £292,146 £163,877
April 2022 £277,168 £209,044 £183,846 £294,983 £169,296
May 2022 £280,903 £210,096 £186,928 £299,085 £169,296
June 2022 £283,164 £212,812 £189,576 £301,262 £169,296
July 2022 £289,025 £216,599 £192,443 £307,594 £175,793
August 2022 £291,452 £217,830 £192,746 £310,564 £175,793
September 2022 £292,404 £222,543 £191,176 £311,771 £175,793
October 2022 £292,288 £222,113 £191,749 £311,570 £175,135
November 2022 £292,552 £219,831 £190,597 £312,311 £175,135
December 2022 £291,361 £221,827 £185,402 £311,717 £175,135
January 2023 £288,778 £216,285 £184,711 £309,097 £172,005

Dropped: June 17, 2023

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