The Resolution Foundation has a message for policymakers: don't bother asking people to downsize.
According to their latest report, most households in England are 'under-occupying' their homes, and incentives to reverse this trend are unlikely to work.
The think tank reveals that three-in-four single pensioners live in homes with a spare bedroom, and 71% of households have at least one spare bedroom, a 2% increase from 30 years ago. Despite having 13 million more bedrooms than in the 1990s, overcrowding remains an issue, affecting 4% of households today, up from 3% in 1994-95.
The report highlights that overcrowding is particularly severe among renting, low-income, ethnic minority, and single-parent households. Black and single-parent households have seen a 6% rise in overcrowding rates, while Asian households have experienced a 5% drop.
Want to learn more about AI's impact on the world in general and property in particular? Join us on our next Webinar! Click here to register
Given the strong preferences people have for their homes and the space they provide, the foundation argues that stronger incentives, such as removing the Council Tax discount for single occupants, would be insufficient. Instead, they recommend building more larger homes, especially in the social rented sector, where 9% of households live in overcrowded conditions.
To eliminate overcrowding in the social rented sector, the report suggests building 8,000 more three-bed homes, 113,000 more four-bed homes, and 25,000 more homes with five or more bedrooms. Additionally, they advocate for unfreezing and re-pegging Local Housing Allowance to local rents to help low-income renters move to appropriately sized properties.
The foundation also calls for a revision of the 'bedroom standard' to reflect modern living patterns, acknowledging that older children and sometimes older couples need their own bedrooms. Updating this standard could reveal a higher rate of overcrowding, particularly among single-parent households, jumping from 18% to 30%.
In conclusion, the Resolution Foundation believes that building larger homes is the key to addressing overcrowding, rather than trying to convince people to downsize.
Want to learn more about AI's impact on the world in general and property in particular? Join us on our next Webinar! Click here to register
Made with TRUST_AI - see the Charter: https://www.modelprop.co.uk/trust-ai
Comentários