Local Authorities hold the key to the housing crisis

Since the 2008 financial crisis, it has been well documented that rental growth has raced ahead of wage inflation.

Families-given-a-helping-hand-in-their-new-homes

This is especially true for those that work in the public sector – where for many, wages have frozen entirely.

The problem is exacerbated in London where rents in the private sector have soared to an all-time high (22% rise since 2011).

Not only that, but London’s population is also expected to grow to 9.8 million people by 2025, according to the ONS.

With more and more people looking for housing, as well as spiralling rent (primarily caused by a lack of affordable housing) the outlook is tough, particularly for London’s key workers.

I believe it’s fundamentally wrong that hard working people that are major contributors to our society – including the police, health, education or non-profit sectors – are being priced out of the areas they work in, despite giving so much back to the local community.

These key workers are the lifeblood of our communities, and deserve better. But what’s the answer?

Unfortunately, London is already one of the most densely populated cities in the world. There is a limit in terms of the space we have, we can’t simply build more and more. We need to become smarter and innovate with the space that is available.

Local authorities could be doing much more to alleviate the problem. There have been stories in the media about the level of public space – the collective assets of the city’s citizen – being sold to corporations.

But is selling their assets really the best solution, or could local authorities be using this valuable space in a much more productive way?

Guardian schemes can provide great value to all parties – particularly London’s key workers.

Local authorities would be better off maximising the value of their vacant buildings by allowing some of London’s vital key workers (through guardian schemes) to benefit from their central locations, rather than simply selling them off privately.

The solution would be mutually beneficial; a well-run guardian scheme provides these people with an affordable rental solution in close proximity to their work.

At the same time, it provides the local authority with a cost-effective solution to managing its vacant buildings. This is what we do through the launch of Lowe Key.

I’m not suggesting that Guardian schemes are the answer to the housing crisis.

But they could provide a stable and sustainable solution in the short term, to protect public workers in our society.

Guardian schemes have other advantages that local authorities should take note of. Aside from the obvious tax benefits, Guardian schemes align with the values of local communities.

Young people today don’t want to be tied down by long contracts, mortgages, or be burdened with excessive deposits.

In today’s fast moving world, even a year is a long time, and many do not want to be confined to a property for this length of time.

Generally Guardian schemes operate a four-week notice period on either side, so residents can move on quickly if their situation changes.

London has a severe shortage of affordable housing.

The problem has become so big that our city is now unable to provide affordable housing to its most valuable workers.

The origins of the problem are deep rooted and complex, but Guardian schemes can go some way to helping the problem.

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