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The UK Housing Crisis.

Updated on November 3, 2012

East of England housing crisis.

The East of England is in the midst of one of the worst housing crisis' it has ever seen. In a report on the local news it warns that house prices are set to rise by up to 52% in the next decade. If this is the case then you can only expect that demand is going to continue to outstrip supply.

For many years now the UK has been in a housing crisis and young people are finding it more and more difficult to get a foot on the housing ladder due to the inflated prices of recent years.

Since the recent financial crashes house prices have taken a hit but are slowly making a return to more normal levels.This is no comfort to the young families who very often have got to leave where they were brought up and have roots and family in order to get a property of their own. This is typical of this current housing crisis.

Supply and demand.

It's all about supply and demand. When demand for a product is high and the product is in short supply the suppliers are able to command premium prices even if the product is not as good as it could be. This is so typical of housing in the UK. Government after government have always predicted that there will be a shortage of housing and particularly community housing where people can rent.

If you look at other countries such as France, they tend to be a nation who rent and not buy houses. In Britain we have always preferred to buy instead.

Cambridgeshir Map
Cambridgeshir Map | Source
Map of Fenland
Map of Fenland | Source

Increased population.

Alarming figures are being published which are telling us that in the next decade certain areas of East of England are going to see increases in population and demand for housing as high as 33%. East Cambridgeshire and Fenland is no exception to this. If better quality sustainable housing isn't built in the next five to ten years then there will be an even bigger crisis than there already is.

Of course there are house building programmes going ahead but it just simply isn't enough. We need even more than is currently being built to serve the demands on supply. Affordability has got to be the key in order for new families to live a decent life and not have to continuously struggle to pay for their home. For people who buy their own home here in the UK more than one third of what they earn goes into the property, maybe even more. When you factor in utility bills and everything else then you are looking at substantially more. Going out to work in the 21st century just to keep a roof over your head is a necessity but there has to be more to life surely.

House price rises.

The fact that it is predicted that house prices in the next decade are set to rise by 52% tells me that the situation is indeed not going to get any better. Is another housing bubble going to develop and will there then be future crashes in the housing market. Only time will tell, but it does seem that this phenomenon is cyclical. We all know that the recent financial crashes were caused by the banking sector not heeding the signs and lending to many who could not afford to buy these high priced, over priced houses. Banking sector pay and fat cat bank bosses creaming all the profits also did not help the situation yet they still continue to be paid to fail, but that is another story for another day.

What I am concerned with is the continued growth of population and prices here. We can't sustain higher property prices and expect things to get better because it seems demand will always outstrip supply until our government finally makes housing, no, affordable housing it's main priority.

It is time for brown field sites to be bought up and used for housing development and not for industry.

What is your view?

I am interested to learn what the general view is on this important subject so why not leave your comments and get your views into the public domain. This is a great platform for doing just that. Please accept my thanks for reading thus far and I look forward to hearing your thoughts.

The copyright of the work of poshcoffeeco is protected. Please do not publish any work of Steve Mitchell without first receiving his personal permission. Any attempt to illegally copy his work will be subject to the laws of the land of Great Britain at the time of publishing.

© poshcoffeeco ( Steve Mitchell


Submit a Comment

  • molometer profile image


    5 years ago from United Kingdom

    Hi Steve,

    That 1 million does not include the 10's of 1,000's of houses, that have been repossessed by the banks in the last few years.

    Many of these have not been allowed back into the market, to artificially keep the market up.

  • poshcoffeeco profile imageAUTHOR

    Steve Mitchell 

    5 years ago from Cambridgeshire

    Mike, thanks for reading and adding your view to the subject. I think you could be right. It does appear that prices are continuing to fall. I was shocked to learn that there are over 1 million empty houses in the uk. So much for demand outstripping supply.

  • molometer profile image


    5 years ago from United Kingdom

    This was always is going to be a tricky problem. What statistics do we believe?

    There are over 1 million empty properties in the UK, so rising house prices, is highly unlikely.

    Plus no one can afford to buy them, even at today's prices so increasing the price, is not only improbable but also irrational and illogical.

    Sorry Steve, but I think Anglia News has some friends in the housing business who are just trying to talk up a dead market.

  • poshcoffeeco profile imageAUTHOR

    Steve Mitchell 

    5 years ago from Cambridgeshire

    Brett, thanks for reading. We should do what the French do and rent.

  • Brett.Tesol profile image

    Brett Caulton 

    5 years ago from Thailand

    I gave up on buying a house in the UK. The prices and interest rates are just too high for new buyers. Hence, I looked overseas and have found many FAR cheaper options.

    Shared, up, useful, pinned and tweeted.

  • poshcoffeeco profile imageAUTHOR

    Steve Mitchell 

    5 years ago from Cambridgeshire

    tobusiness, you are right it is possible to get 95% mortgages on the 1st buy scheme as my son has done just that. His property is almost £190k. It is a worry the amount to pay back with interest is almost double. We can't sustain these figures when wages just don't match. Luckily he has a good job in I.T and is geting married next year. What happens when he starts a family? One wage coming in. It get's tough and should not have to be so. Rents are no different and are out of line with the majority of salaries I fear.

    Thanks for the comment, I appreciate that.

  • tobusiness profile image

    Jo Alexis-Hagues 

    5 years ago from Lincolnshire, U.K

    Here in Bedfordshire, we have one of the fastest growing population in the UK, and a huge demand for additional housing. The Council is committed to building a number of new houses to meet this growing need. However, I do think the British love affair with owning our own homes is something that may have to change as the price of property gets beyond our means. I believe it is now possible to get 95% mortgages again, even so, with property prices set to rise, first time buyers are still going to struggle.

  • poshcoffeeco profile imageAUTHOR

    Steve Mitchell 

    5 years ago from Cambridgeshire

    shiningirisheyes, thanks for you perspective on the subject. It seems that there will always be a bigger demand for housing than houses available in the UK especially as population rises on our small island.

    62 million and rising.

  • shiningirisheyes profile image

    Shining Irish Eyes 

    5 years ago from Upstate, New York

    I do not share the opinion that the housing market is rebounding in my country. I don't consider myself a cynical person but when my government is the source for accurate information, I tend to question it. The housing crisis is a serious matter throughout the globe and I can only pray you and I see a positive change in the near future.

  • poshcoffeeco profile imageAUTHOR

    Steve Mitchell 

    5 years ago from Cambridgeshire

    always exploring, thanks for the comment I hope so too.

  • always exploring profile image

    Ruby Jean Richert 

    5 years ago from Southern Illinois

    The housing market is rebounding in America, slowly but surely. I hope it does the same in England. Enjoyed the read..Cheers


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