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Cost of Living Crisis – What Impact Will it Have on the Housing Sector?

Posted on July 22, 2022.

The cost-of-living crisis is on everyone’s minds at the moment and the more we learn about its impact, the more problems will arise.

One of the biggest impacts will be on the housing sector. There’s already a lack of affordable housing, but as the regular household pinches pennies to afford their rent, it’s likely many will find themselves unable to pay.

During the pandemic, levels of homelessness dropped as plans were put into place to get people off of the street and into sheltered accommodation. However, as inflation rises and budgets tighten, many will find themselves facing homelessness. It’s a very real problem that many housing associations are already seeing.

They simply don’t have enough affordable housing for everyone and there isn’t enough being built to cope with the increasing demand.

Across the UK there are over 600,000 empty homes. These buildings have been left to fall into disrepair or have been made void by owners who can’t afford to or don’t know how to refurbish or develop the property.

Schemes have been put into place to reduce the number of properties sitting empty across the country but the figure only dropped by 2% in the past year so it’s clear something else has to be done.

Guardianship is one of the solutions to this problem but doesn’t fix everything. Still, having Guardians in a property means affordable housing for working professionals and fewer homes sitting empty. It also means owners don’t have to worry about refurbishing as fit-out costs are covered by the Guardianship company. It’s also a great solution whilst waiting for planning permission or redevelopment.

Another option is for local authorities to take control of vacant properties and return them to use. This comes at a cost that many are not willing to take on and so even fewer options are available. Local councils also offer services to help landlords and property owners return their vacant properties to use, but in all circumstances, the property owners have to be willing to work with councils and local authorities.

On the other end of the spectrum, many who can’t work for various reasons will still be struggling. Even higher-income households are feeling the pinch on things like fuel costs and groceries. The average food shop has increased by nearly £500 this year alone and will continue to increase as supply negates to meet demand and inflation continues to rise.

Many will be considering how to save money and we think Guardianship is a brilliant way to do this for those who aren’t eligible for social housing. The prices are on average 60% lower than the rental market and are still in central locations where many people work.

 

If you’re looking to save money and need an alternative living solution, learn more about Guardianship here.


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