New Report Highlights Growing Concerns for Britain’s Housing Crisis

UK Housing Market

For many UK residents, the hope of owning a home is slipping away. A new report from May 2025 reveals that Britain’s housing crisis is deepening, with soaring house prices, leasehold frustrations, and stamp duty concerns making it harder than ever to buy or rent affordably. From young professionals struggling to save for a deposit to families facing rising rents, the crisis is reshaping lives across the country. This article dives into the key findings of the report, explores the impact on UK residents, and looks at what’s being done to address the problem. Let’s unpack what’s going wrong and what it means for you.

Key Findings: A Crisis Getting Worse

The recent report tracks housing concerns over the past decade and paints a troubling picture. It shows that 81% of UK adults now see house prices as a serious problem, a figure that’s held steady since 2015. Similarly, 81% are worried about first-time buyers’ ability to get on the housing ladder, while 79% cite saving for a deposit as a major issue. Housing availability (75%) and quality (65%) also remain top concerns. These long-standing issues show that the housing market has been broken for years, with little progress made.

What’s new is the sharp rise in specific worries. The leasehold system is now a serious concern for 64% of UK adults, up from 42% in 2015—a 22-percentage-point jump. Stamp duty has also become a bigger issue, with 64% calling it a serious problem in 2025, compared to 51% a decade ago. The home buying and selling process itself is frustrating 60% of people, up from 51% in 2015. These figures highlight a growing sense of frustration with a system that feels stacked against buyers and renters alike.

Who’s Hit Hardest? First-Time Buyers and Renters

Aspiring first-time buyers are feeling the pinch most acutely. The report notes that 88% of them see house prices as a serious issue, compared to 81% of all UK adults. Housing availability is a concern for 87% of aspiring buyers, and 77% worry about getting a mortgage, compared to 65% nationally. A striking 42% of aspiring homeowners believe now is a bad time to buy, far higher than the 31% of UK adults who feel the same. Financial barriers like the cost of living, mortgage costs, economic uncertainty, and rising stamp duty are cited by 82% of aspiring buyers as major obstacles.

Renters are also struggling. Private rents have surged, with London seeing an 11.6% increase in the year to November 2024, bringing average rents to £1,362 a month. Nationally, rents outside London hit £1,316 a month in 2024, a record high. For low-income households, the situation is dire, as frozen Local Housing Allowance (LHA) payments fail to keep up with rising rents. In London, rental listings have dropped by 41% since 2017-19, making affordable options scarce and pushing 166,000 people into temporary accommodation.

Leasehold and Stamp Duty: Growing Frustrations

The leasehold system is a major source of anger. Many leaseholders feel trapped in homes they have little control over, facing high service charges and complex legal issues. Despite recent government reforms, progress has been slow, leaving 64% of UK adults worried about the system. This is a significant jump from 2015, when only 42% saw it as a serious issue. The report highlights that leasehold frustrations are particularly acute for those stuck in flats with escalating costs and limited rights.

Stamp duty is another growing concern, with 64% of UK adults now viewing it as a serious problem, up from 51% in 2015. In Wales, this figure is even higher at 72%. The tax is seen as a barrier to mobility, discouraging families from moving and hitting first-time buyers hard, especially after recent cuts to tax-free thresholds. The report notes that stamp duty is particularly unpopular because it adds a significant upfront cost to an already expensive process, further squeezing affordability.

Regional Differences in the Crisis

The housing crisis isn’t uniform across the UK. In Wales, 90% of people see first-time buyer struggles as a serious issue, compared to the national average of 81%. Negative equity is a bigger worry there too, with 63% concerned compared to 47% nationally. In Scotland, housing availability is a top issue, with 82% of adults worried compared to 72% across the UK. London faces the most intense pressure, with house prices often 17 times the average salary and a severe shortage of affordable homes. In contrast, some northern regions have more affordable housing but struggle with older, poorer-quality stock needing repairs. These regional variations show that solutions must be tailored to local needs.

The Bigger Picture: Supply and Homelessness

Beyond the report’s findings, the broader housing crisis stems from a chronic shortage of homes. The UK needs about 340,000 new homes annually but built only 200,000 in 2023-24, creating a backlog of 4.3 million missing homes compared to other European countries. The decline in social housing, with only 9,535 new social homes built in 2022/23, has worsened affordability for low-income households.

Homelessness is another stark consequence. In December 2024, over 354,000 people in England, including 161,500 children, were homeless, a 14% rise from the previous year. In London, rough sleeping hit an all-time high in 2024, and 166,000 people are in temporary accommodation, equivalent to a city the size of Oxford. Overcrowding is also a problem, with 8.2% of social rented households and 5.1% of private rented households living in cramped conditions.

What’s Being Done to Fix It?

The government has set a target of 1.5 million new homes in England by the end of the current Parliament. To achieve this, planning reforms are being proposed to streamline approvals and reduce local opposition, possibly through a rules-based system. Funding for 300 additional planning roles has been announced, but experts warn this won’t quickly clear the backlog of applications, as training new planners takes years.

Investment in social housing is also crucial. Reports call for 145,000 affordable homes annually, but current building rates are far lower. A £2 billion pledge aims to fund 25,000 social rent homes over five years, yet this falls short of replacing the 120,000 social homes lost between 2012 and 2016. Other ideas include converting empty offices into homes and regulating short-term lets to ease rental market pressures.

What Can You Do?

If you’re struggling with housing costs, there are steps you can take. First-time buyers might explore shared ownership schemes, though options like Help to Buy have been scaled back. Renters can check eligibility for housing benefits or seek advice from charities like Shelter. If you’re facing homelessness, contact your local council for support, though services vary. Writing to your MP about issues like stamp duty or leasehold reform can also help push for change. Every voice matters in tackling this crisis.

Looking Ahead

The May 2025 report confirms that Britain’s housing crisis is deepening, with leasehold, stamp duty, and affordability concerns hitting new highs. For UK residents, the dream of a stable, affordable home feels further away than ever. Building more homes, reforming the planning system, and addressing issues like leasehold and stamp duty are essential steps. By staying informed and advocating for change, residents can help shape a future where housing is fairer and more accessible for all.