How to fix the housing crisis? We’ve told the government again and again and again
I’m a London estate agency chairman – and I’m tired of talking about the same housing problems every month, writes Simon Gerrard
Last week’s news that housebuilding in London has dropped to its lowest level since 2009 should have rung alarm bells in Whitehall. Instead, it was met with the same muted response we’ve come to expect – just another bleak chapter in a long-running story of inertia in the London property market.
For those of us working on the frontlines of the housing market, this is not news. It’s the same story, told with slightly different headlines: demand is sky-high, supply is strangled and the government’s well-meaning answers are either half-baked or five years too late.
For months – let’s face it, years – we’ve all been saying the same thing. The market is broken. First-time buyers are locked out. Renters are stuck in limbo. Developers face a hostile planning system. Each fresh set of ONS statistics lands with all the predictability of a broken record, and even when the political will seems to exist, the execution is riddled with delays and contradictions. It’s not that policymakers aren’t trying, but the steps they’re taking simply aren’t bold enough to match the scale of the crisis and offer a fresh story.
This isn’t about party politics. I welcome Labour’s stated ambitions, but we continue to see more headlines than real change, and I’m tired of talking about the same housing problems every month. Take leasehold reform, heralded as a revolution by ministers. In practice, it’s a shiny new system for future buyers, while millions of current leaseholders remain trapped in outdated frameworks, burdened by opaque charges and unresolved cladding concerns. We’re drifting toward a two-tier system: one for those fortunate enough to benefit from new rules, and another for everyone else.
Labour must reform housebuilding sector
Yes, leasehold reform is essential, and giving homeowners more control over their properties is a step in the right direction. But the practical implications are being overlooked. From neighbour disputes to unpaid contributions and legal headaches, we risk swapping one mess for another. And without clarity on how these changes will be implemented, the result is more paralysis – developers delay building, lenders hesitate and prospective buyers are caught in the crossfire.
Then there’s stamp duty. In London, the average first home now costs over 10 times the average salary. The recent changes introduced in April have only exacerbated this crisis for first-time buyers, who will now find it impossible to get their foot on the ladder. The solution is simple: scrap stamp duty for first-time buyers entirely. Better still, flip the model and make sellers pay instead. That would remove a major barrier to entry and inject some much-needed movement into the market.
It’s easy to talk about unlocking supply. But unless we’re willing to commit to meaningful reform, nothing will change. If we keep circling the same problems with half-measures and flawed fixes, we’re not just wasting time, we’re losing a whole generation of potential homeowners.
I’ve spoken with countless others in the industry who are growing weary of repeating the same warnings month after month, only to see them go unheeded. It’s time for the government to stop tinkering and start thinking radically. If they’re ready to have that conversation, I’d be more than happy to offer suggestions.
Simon Gerrard is chairman and managing director at Martyn Gerrard Estate Agents