That isn’t a typo, of the 7,850 households
in Harlow, 2,472 of those properties don’t only have one spare bedroom, but two
spare bedrooms! … and it is this topic I want to talk about this week, my Harlow
Property Market Blog readers – because this could be the cure for Harlow’s
housing crisis. The fundamental problem
of the Harlow housing ‘crisis’, is the fact that the supply of homes to live in
has not historically met demand, increasing property values (and in turn rents),
thus ensuring home ownership becomes an unattainable ambition for the twenty
something’s of Harlow.
Call me a realist, but it’s obvious that
either demand needs to drop or supply needs to rise to stop this trend getting
worse for the generations to come. Don’t
get me wrong, I admire Downing Street’s plans to build 200,000 starter homes
which will be offered to first time buyers under 40 with a minimum 20% discount
price. However, the building of starter
homes on current building sites, where new homes builders already have to build
a certain number of affordable ‘starter’ homes at the moment under a different
scheme, does not increase the stock of new ‘starter’ homes, it simply replaces
one affordable scheme with another.
(Photo Courtesy of taxGone in Harlow)
One option that could resolve the housing
crisis is if the Government literally looked closer to home, concentrating on
matching households with the appropriate sized home.
In Harlow, 4,818 households have one spare
bedroom and of these, 2,472 have two or more spare bedrooms.
This compares to 431 households in Harlow
that are overcrowded (i.e. there are more people than bedrooms in the property).
Looking specifically at the homeowners of Harlow,
1,624 owner occupied Harlow houses have one spare bedroom. Now having a spare bedroom is not considered
a luxury. However, in addition to those 1,624
households with one spare bedroom, there are on top, a further 2,075 owner
occupied Harlow households with two or more spare bedrooms.
Therefore, I am beginning to see there is the
spare capacity in the Harlow housing market.
Principally, I will concentrate on the group that makes up the bulk of
this category, the owner occupiers of large properties, in their 60’s and 70’s,
where the kids flew the nest back in the 80’s and 90’s. They call it ‘downsizing’, when you sell a big
property, where the extra bedrooms are no longer required, to move into a
smaller and, usually, less expensive property.
However, there are many explanations why these
individuals do not downsize. These people have lived in the same house for
30, 40 even 50 years, and as one matures in life, many people do not want to depart
from what they see as the family home. Much
time has been invested in making friends in the area and it’s nice to have all
those rooms in case every grandchild decided to visit, at the same time, and
they brought their friends! But on a
more serious note, more and more people are beginning to downsize earlier, but in
my opinion, not at a fast enough rate. As
the years go one, we will have a situation where younger families will be
living in smaller and smaller houses, whilst all the large houses with a couple
of 70 something empty-nesters rattling around them! I believe the Government should put more weight
behind downsizing, because with the right incentives, many could be encouraged
to think again and make the spare rooms available.
.. and it would have to be incentives, as
the using the stick (instead of the carrot) would be political suicide for any
party, especially the Tory’s. One option
is to allow retired downsizers not to pay stamp duty on the new property,
saving them thousands of pounds and another for the planners to work with
builders to build not only starter homes for under 40’s, but also have housing
built just for retired downsizers ... or is this one step too far in ‘social
engineering’?