Affordability: the built environment’s elephant in the room

Affordability: the built environment’s elephant in the room

In a recent BBC news article, shared ownership was described as “wildly unaffordable”, due to factors such as spiralling service charge costs combined with poor building management. Shared ownership has become just one more sticking plaster applied to a gaping wound — the escalating cost of buying or renting a home in the UK today.

13 April 2026

Affordability is challenging established assumptions about the how the housing market works and it threatens to undermine the best intentions of placemakers.

Affordability is challenging established assumptions about the how the housing market works and it threatens to undermine the best intentions of placemakers.

How did it get to this and what are the possible solutions? At our March Sprint meetup for Patn members and guests, we attempted to tackle the affordability issue.

The slow death of the property-owning democracy

In its time, the property-owning democracy was a bold idea embodied in Margaret Thatcher’s Conservative government’s flagship Right to Buy policy, set out in the 1980 Housing Act.

Under the policy, council housing tenants could buy their properties outright from their local councils. But the policy also stipulated that the councils couldn’t use any of the money raised by these sales to fund new social housing.

According to Shelter, 94,410 new council homes were built in 1980, but by 1983 this figure was down to 44,240. Meanwhile, over 2 million council homes have been sold through Right to Buy since 1980.

But house prices have also soared over this period. The average cost of a home in 1980 was a little over £22,000. In 2025 it was close to £300,000. The 1980 figure was around 3 to 3.5 times the average salary. In 2025, it’s around 7 times.

Consequently, the private rental sector has grown. In 1980, it was in decline and accounted for around 11 to 12% of UK households. In 2025, it accounts for around 19%, second only to owner-occupiers and overtaking social rented housing. However, it has affordability issues of its own. According to ONS, private renters in England spent over 36% of their income on rent in 2024.

The combination of declining social housing, soaring house prices and rents is damaging to the established property ecosystem. The whole notion of getting onto the property ladder has altered. The average age of a first-time buyer in the UK is now 34. In 1980, it was approximately 26. More adults are living with their parents — 28% of 20-34 year olds in 2024, according to ONS.

The cost of buying and renting is changing how we live but how the system currently works fails to acknowledge this. It’s almost as if the approach is to ignore the affordability issue in the hope that it will go away and, somehow, the system will right itself, to keep alive the dream of the property-owning democracy.

What is “affordable”?

What is “affordable”?

A dictionary definition of affordable is “reasonably priced”. The National Planning Policy Framework (NPPF) says affordability should be 20% below market value. But when market value is 7 times the average salary, how reasonable, or realistic, is this?

Of course, this is only one affordable housing option. There are others, such as social rents and shared ownership. However, according to TCPA, between 2012 and 2022, there was a net loss of 209,000 social rent homes in England. Shared ownership has problems of its own, as mentioned at the start.

“Affordable” has become another piece of housing terminology with diminished meaning, something to throw out there to try and appease the growing air of discontent. It’s not working.

“Affordable” has become another piece of housing terminology with diminished meaning, something to throw out there to try and appease the growing air of discontent. It’s not working.

Essentially, there’s a shortage, both in the supply of affordable housing and investment in genuinely affordable options.

Why affordability isn’t worth it

The market isn’t the solution to affordable housing. The government mantra is, “Build more homes,” but affordability isn’t simply a supply problem. Or, to put it another way, developers and construction companies cannot solve the crisis in affordable housing because they don’t think they can afford it. Materials are expensive. Labour is expensive. Above all, land is expensive. These costs keep rising. It’s a question of viability.

Developers are reluctant to build homes they can’t sell. Nor do they wish to take a hit on their profits. They’d rather sit things out, because land prices rise regardless, so they prefer to wait.

Where they are building, they’re much more likely to try and incentivise buyers by reducing their fees or offering help with deposits than by lowering prices overall.

Overviews of the housing crisis tend to focus on supply but affordability is really a demand problem — there’s a lack of demand for the homes developers build at the prices they offer them. 

Again, the solution can’t be to simply build more homes. Context is everything. The UK needs more homes that people can afford to live in.

Where is the appetite for change?

No one looking at Manchester’s skyline would say developers lack ambition. But in the wider built environment, there is a lack of an appetite for a fundamental change in how the market works.

This extends further, into government. It seems the housing crisis is too big a problem to get to grips with. Instead, there have been various initiatives and interventions, such as help for first time buyers, shared ownership schemes, stamp duty manipulation and, more recently, planning reform.

In the face of the looming existential threat to UK home ownership, these are little more than gimmicks.

Good intentions aren’t going to be anywhere near enough to fix the affordability issue. It requires a wholesale attitudinal change and cultural shift. We should all ask ourselves, what will happen to housing in the UK if nothing changes?

Eldridge Cleaver said, “If you are not part of the solution, you are part of the problem.”

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