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Susan Murray (Mid Dunbartonshire) (LD)
I beg to move,
That this House has considered the housing needs of young people.
It is a pleasure to serve under your chairship, Ms Butler. Everyone has the right to a safe, secure and healthy home, yet for far too many young people across the United Kingdom, that feels increasingly out of reach. The effects go far beyond housing: it is about young people’s ability to leave home, to work and contribute, to start a family, and to build a stake in the country they call home.
I am sure every hon. Member here can see the shift happening in their constituencies. We see children staying at home for longer and struggling to save to move out. In 2024, the Office for National Statistics showed that a third of men aged 20 to 34 were living with their parents, along with just over a fifth of women of the same age. That is not a lifestyle choice; it is the result of a housing market that has moved beyond what young people can afford.
Nowhere is the pressure clearer than in the private rented sector. Private renters in the bottom 20% of earners spend an average of 63% of their income on rent, and private renters overall spend 34% of their income on housing. That means that the average renter pays rent that, by the Government’s own definition, is not affordable. Someone renting from the age of 18 will have paid almost £200,000 in rent before reaching the average age of a first-time buyer in Britain—34. A young couple will have paid more in rent than the cost of an average home in the UK plus an extra £110,000 on top.
That is not a fair system. It simply strips wealth from younger people and takes away our children’s future. Given the enormous sums of money that young people pay in rent before they have an opportunity to get on the property ladder, will the Minister meet the Liberal Democrats to discuss a rent-to-buy scheme?
We also see the strain in the rise of what we call concealed households. In 2020, there were nearly 2 million households that included an additional adult who wanted to rent or buy but could not afford to do so. More than half the people in those households were aged 16 to 24. I am sure we all understand that this stems from years of failure; it is not a problem that has happened overnight. We now have adults living in childhood bedrooms—not because they want to, but because there is nowhere affordable for them to go.
For many young people, home ownership feels less realistic and more like a distant aspiration. High prices, high deposit requirements and the pressure of everyday living costs have pushed ownership further and further out of reach. Nowhere is that clearer than in the average age of first-time buyers. In the 1970s, it was as low as 24; now, as of this year, it has been pushed up to 34. It is no wonder that young people feel like the system is not working. ONS data shows that in 2024, the median house-price-to-income ratio was 7.9 in England, 5.4 in Wales, 5.3 in Scotland and 4.6 in Northern Ireland.
Douglas McAllister (West Dunbartonshire) (Lab)
In December 2023, the Scottish SNP Government slashed their affordable housing budget by £200 million—a 26% reduction. We have record levels of children in temporary accommodation in Scotland—10,000—and under the SNP’s watch, rough sleeping has increased by 66%. Scottish Labour is promising 125,000 new homes to add to the UK Government’s ambitious targets. Does the hon. Member agree that that would surely tackle the housing needs of our young people?
Susan Murray
I absolutely agree, and I would add that the Scottish Liberal Democrats are also contributing to the push for additional affordable housing in Scotland.
The ONS also found that a median-priced home was affordable to the highest-income 40% of households in Scotland and Wales, while in England it was affordable only to the top 10%. That means that even in the most affordable nation, the average house price is now more than banks are willing to lend to someone on an average salary. Can the Minister tell us what discussions the Government have had with the Financial Conduct Authority about its ongoing mortgage rule review and whether it will publish an assessment of how any changes would affect the under-35s? Any changes must not make the situation worse.
Lack of access to affordable homes causes the decline of communities and the widening of wealth gaps. If people can rely on family wealth, or perhaps family sacrifice, to access the property market, they have an enormous headstart on their peers. With that in mind, can the Minister explain what assessment has been made of whether the Government’s first-time buyer support schemes, such as help to buy ISAs, are genuinely reaching young people on ordinary incomes, rather than those who already have family who can help them out?
The consequences of this issue, as we have heard, go beyond housing. When young people cannot afford to live near work, talent leaves and our best and brightest look for opportunities overseas. When high rents dominate young people’s finances, local businesses suffer and third spaces die out. The economic impact of the financial stranglehold that housing has on our youth hurts us all. The Minister must recognise that housing and security are now affecting not only where young people live but whether they feel able to start a family.
I want to make something clear for those who misrepresent the struggles of young people trying to get on the property ladder: young people are not asking for handouts or special favours, and the reason that they cannot buy a home is not their lifestyle. They are asking for a fair chance—the chance to build a life of their own. It is a chance that previous generations have had. This Government have an enormous majority and, if used properly, the opportunity to give young people real hope. I urge the Government to listen to and work with young people to give them the future that they deserve.
Several hon. Members rose—
Dawn Butler (in the Chair)
Order. I remind Members to bob if they wish to partake in the debate.
Sally Jameson (Doncaster Central) (Lab/Co-op)
It is a pleasure to serve under your chairship, Ms Butler. I thank the hon. Member for Mid Dunbartonshire (Susan Murray) for bringing forward this debate. I will focus on the housing needs of care leavers and those with care experience.
Every year around 12,000 young people leave foster care or residential homes and begin their transition into independent living. For most young people, that stage of life can be supported by family, friends and a social network—they have a safety net—but so often for care leavers that safety net does not exist. As a result, they face a sharply heightened risk of homelessness: in 2024-25 alone, 4,610 care leavers aged between 18 and 20 experienced homelessness. That represents a 54% increase over five years, with rates rising 2.5 times faster than among the general population.
Those numbers represent young people who are being pushed into crisis at the very point that they should be building their future. The Government have recognised that challenge, and they are introducing important changes through the Children’s Wellbeing and Schools Bill. That includes additional support for care leavers at risk of homelessness, a raft of changes in the Department of Health and Social Care around prescriptions, and wholesale reform of children’s social care. The Bill is a hugely positive and welcome step, but I hope that we can go further.
There remain significant barriers that prevent care leavers from accessing accessible and suitable accommodation. The private sector, which many young people rely on, is particularly difficult for them to navigate. Research from Centrepoint has found that care leavers are significantly more likely to be rejected by landlords, who are unwilling to rent to that particular group. At the same time, 40% reported they could not afford deposits and up-front costs.
Practical solutions do already exist, but they are not mandatory and they are not used widely enough. Local authority rent deposit and guarantor schemes make a real difference, yet fewer than half of councils currently offer them. Expanding such schemes could be a straightforward and effective way to open doors for care leavers who would otherwise be locked out of the housing market.
In Doncaster, we have fantastic organisations such as Doncaster Housing for Young People, which provides real support, particularly for those without a safety net. In Doncaster, like in so many areas, there is a critical shortage of affordable, move-on housing. Many young people are ready to live independently but are unable to do so because of a lack of appropriate accommodation. There are not enough one-bedroom properties and, as a result, young people are often penalised by things like the bedroom tax, which they simply cannot afford on basic universal credit.
Young people, particularly care leavers, who are supported by Doncaster Housing for Young People are ready to move on, but they are stuck. They are stuck not because they are unprepared or have not been supported, but because the system does not provide housing that they can realistically access.
If we are serious about improving outcomes for care leavers, we need to go further. We must increase the amount of genuinely affordable housing and ensure that they have access to it. We must expand access to practical support, such as deposit and guarantor schemes, where it is not already available. Finally, we must ensure that the welfare system as a whole works with, not against, young people who are trying to build independent lives in terms of both housing and employment. Leaving care should be the start of a future, not the beginning of a housing crisis.
Several hon. Members rose—
Dawn Butler (in the Chair)
Order. I ask that Members please speak for roughly six minutes so that we can fit everybody in.
Jim Shannon (Strangford) (DUP)
It is a pleasure to serve under your chairship, Ms Butler. I thank the hon. Member for Mid Dunbartonshire (Susan Murray) for her contribution, and for her passion for helping the young people in her constituency and across the entire UK.
I do not know what everybody else does, but after a busy week at Westminster my heart longs for home. It longs to get home to enjoy my precious grandchildren, my dear wife and my bed, which, no matter what, fits me better than most. Home is a wonderful thing, and I put on record my thanks to my wife Sandra for giving me a home for 39 years.
However, it is becoming increasingly difficult for young people to find a home. For thousands of young people across Northern Ireland that foundation is crumbling. Members will not be aware of the 38,336 households across the Province currently in housing stress. That is not just a number; it is a record high that represents a 6% increase in just one year.
It is good to see the Minister in his place; he is, by his very nature, incredibly helpful. He always tries to be helpful in any debate and with any questions that I have. I am quite sure that the answers to our requests will be positive and constructive.
To give a Northern Ireland perspective, which the Minister will be glad to know he is not responsible for, in my own council area of Ards and North Down—a borough that is rightly celebrated for its beauty—there hides a growing struggle similar to that which the hon. Member for Mid Dunbartonshire referred to and others will refer to as well. As of March 2024, there were some 3,300 applicants on our local social housing waiting list. Even more alarmingly, 81% of those applicants—more than 2,400—are officially in housing stress. They are living in conditions that are overcrowded, unsuitable and simply unsafe.
The crisis is stealing the childhoods of our youngest citizens. Across Northern Ireland, some 5,000 children are now living in temporary accommodation. That is a staggering 99% increase just five years, which gives everyone an idea of the problem in Northern Ireland. These children are not just waiting; they are spending an average of 38 weeks—nearly three quarters of a year—stuck in hostels or B&Bs. In Ards and North Down, we have the fifth highest social housing waiting list in the whole country.
For a young person starting out, the dream of independence is being replaced by the reality of hidden homelessness. For many it is simple—it is a brutal matter of affordability. In the last year alone, house prices in Ards and North Down in my Strangford constituency reached an average of £243,924—the highest average increase in all of Northern Ireland. We had the highest average increase across all the Province.
For a young person on a starting salary or a care leaver trying to find their footing, these prices are a wall, not a doorway. I have had two of my three sons, with their families, move in with me and Sandra at separate times, in a desperate attempt to save money for a home. We will always give them money to help them with a home, but the price of houses has become so much that the achievement of a mortgage is almost beyond all grasp. It is a near-impossible leap to get on to the first rung of the property ladder.
We know that 64% of care leavers in Northern Ireland present as homeless within just a few years of leaving the system—the hon. Member for Doncaster Central spoke about care leavers in particular. Without targeted support, we are setting our most vulnerable up to fail.
Statistics, by their very nature, can be cold, but the stories they tell us are urgent. When one young person in the UK becomes homeless every four minutes, we cannot afford to look away. We need more than just targets and goals. We need the 1,390 new social units projected for my borough alone to be built and allocated with urgency. I welcome the Government’s programme of house building. We need whatever houses are built. The Government’s original target of 1.5 million may not be achieved, but if 1 million were achieved over this term of government, that would be a fantastic success.
It is time we ensured that every young person in the UK has a place to truly call home. We have to help them or that will not happen. I know the Minister understands the situation only too well, but I ask him to help those most vulnerable to get on to the ladder and find an affordable place that they can call home. I would appreciate the Minister’s engagement with the relevant Minister in Northern Ireland—he always does that, very helpfully. It is important that the policies that start here, driven by this Government, are the policies that we also adopt in Northern Ireland, to bring the same delivery.
Sean Woodcock (Banbury) (Lab)
It is a pleasure to serve under your chairship today, Ms Butler. When I first stood for election to this place, I did so with a mission to fix Oxfordshire’s broken housing market. I saw the mess that we were in. I saw the lives broken by that market long before I arrived here.
Oxford faces a crisis of unique and crushing proportions. Homes now cost 12 times local earnings—a burden for the city, a burden for the county and a burden that no other part of this country is asked to bear.
For our young people, the situation is transformative in the worst of ways. Those aged 25 to 34 are now the backbone of a private rented sector that has doubled in size since the start of the century. These young people are renters by necessity, renters without equity and renters without a clear path to a home of their own.
In Oxford, nearly a third of households rent privately. As the city’s prices climb, the pressure climbs; as the pressure climbs, people leave. They leave and go to places such as Banbury. They come for the 20-minute commute, but they bring with them the weight of Oxford’s exhaustion. Thus Oxford’s housing problems become Banbury’s housing problems. Demand has surged. Supply has stalled. My inbox swells as the local housing waiting list ticks up and up, quadrupling in a single decade.
This is what I say to the local voices who question why Cherwell district council, which covers Banbury, must contribute to Oxford’s unmet housing need: “It is no longer Oxford’s need. It is our need in Banbury as well. It is our future. It is our children who are being priced out of their own parishes.”
Let us be clear: this is not merely a housing crisis. It is an economic crisis. Oxford does not just grow; it prospers. It does not just work; it innovates. Our high-tech industries generate £23.5 billion in gross value added annually. We are a net contributor to the Exchequer, a global destination for talent and a titan of enterprise. That is why the Chancellor is right to champion the Oxford-Cambridge corridor—it is a vision of growth, infrastructure and national renewal—but that vision will remain a mirage if the workers required to build it cannot afford to live within it.
By failing to build, we are stifling the growth we seek, the talent we nurture and the very future we promised to deliver. I therefore urge the Government to give young people in Banbury and across Oxfordshire the tools, the support and the resolve that we need to help me to keep my promise of helping to fix Oxfordshire’s broken housing market.
Jeremy Corbyn (Islington North) (Ind)
It is a pleasure to serve under your chairing of this debate, Ms Butler. I have the honour to represent an inner London constituency, in which approximately a third of the population live in private rented accommodation. Among young people, that proportion is considerably higher because of the problems they have with access to social housing of any sort, which force them into the private rented sector or into sharing properties.
The stress they suffer is enormous, the overcrowding that happens in shared flats is horrendous and the way young people have to club together to try to pay rent, which for even a two or three-bedroom flat would be at least £2,000 a month in the private rented sector in my constituency, means they have no possibility of saving money for anything else. Their whole life revolves around work, trying to pay the rent and the other costs that go with it.
Their ability to access council or housing association accommodation is extremely limited, because there is an enormous waiting list with a terrible stress level and shortage of housing. Essentially, to be allocated council housing, a person must have quite profound special needs. I see the Minister nodding; he understands very well that this is an issue all across London. Communities are increasingly broken up because of the lack of access to anything that one could begin to call affordable housing.
There are a number of things that we could do about that. First, we could increase the levels of control over the private rented sector, something I have raised before with the Minister. I support the Renters’ Rights Act 2025—it is a big step forward, because it gives more security and power to the tenant vis-à-vis the landlord. However—and this is the big problem, particularly for London, the south-east and every other big city—the lack of rent control means that places become increasingly unaffordable, forcing young people out of these areas altogether. I hope, as a result of this debate, that the Government can give us some hope that they will be able to do something about young people’s housing, particularly in inner-urban areas.
There is also the issue of the administration of housing associations. I was a councillor before I became an MP, and I remember when housing associations were thought to be the panacea for all ills. In the 1970s, they were promoted as a wonderful thing: co-operatively and locally run, responsive to tenants needs, and the other things that we would always want.
These days, it is not even a little bit like that; we have enormous housing associations, owning thousands of properties across a very wide part of the country and the cities. There is very little response to tenants’ needs and, frankly, they are well out of touch. I spend a great deal of time representing the needs of tenants, particularly those of housing associations Peabody and Clarion Housing.
However, the housing associations have in many cases leased properties to special needs housing groups. That is often quite a good thing; for example, the Peter Bedford Trust, in my area, is a very good organisation that has done a great deal of work to help mainly, but not exclusively, young people with very profound and special needs. Sadly, a couple of weeks ago I learned that Clarion Housing Association is taking back a large number of its properties, leaving a large number of young, and middle-aged, people stressed and needing to find somewhere else to go. I hope the Minister can give us some indication of the Government’s thoughts on the democracy and accountability of the very large housing associations in particular, because there is a growing feeling of alienation from them.
Evictions are happening in the private rented sector because of the implementation of section 21 no-fault evictions. I am delighted that such no-fault evictions will end when the Renters’ Rights Act 2025 finally comes into effect; that is a huge step forward. My deep regret is that they did not end in July 2024, because as soon as the Act and its contents were announced the landlords took advantage by implementing large numbers of no-fault evictions ahead of the time when they will not be able to. It is too late to do much about that, but I urge that there be some thoughts about that.
The last thing I will say, in the 39 seconds remaining, is this: colleagues have talked about rising up the housing ladder and, while I understand the language and its use, the reality is that as a society we tolerate too much housing stress, homelessness and housing poverty. We need a principle of housing as a right, rather than the idea that housing is all about an investment for your own future. Surely housing should be for housing needs; that should be the primary consideration.
Catherine Atkinson (Derby North) (Lab)
It is a pleasure to serve under your chairship, Ms Butler. I am grateful to the hon. Members for Mid Dunbartonshire (Susan Murray) and for Taunton and Wellington (Gideon Amos) for securing the debate.
Housing is an issue that goes to the heart of opportunity for young people. A generation that came of age in the wake of the financial crisis and saw youth services slashed under austerity then had their lives put on pause by the pandemic; now, when they seek to be independent, they face a housing market that is too often still inaccessible.
Young people in the private rented sector spend a higher proportion of their income on rent than any other age group—if they are able to live independently at all, that is. In 2014, 36% of those aged 24 still lived in their family home; by 2024, that had risen to 49%. Thankfully, this Government are treating the issue with the seriousness it deserves. The £39 billion investment in social and affordable housing is the most ambitious in a generation, and planning reforms will unlock growth. Together with the Renters’ Rights Act 2025, which was passed by this Labour Government and comes into force next month, it represents not just policy change, but a long-term commitment to rebuilding a housing system that works.
Young people, particularly 25 to 34-year olds, are disproportionately more likely to rent, as is already clear from the debate, so they are highly vulnerable to high housing costs. Regulating rental increases will significantly benefit young people, providing greater housing stability and increasing financial predictability. I often talk about ensuring that, when we build homes, the infrastructure that communities need is in place, and I would like to talk about partnerships in delivery.
In Derby, we have seen at first hand the role that organisations such as the YMCA play in supporting young people into safe, stable housing. The Foundry Point development, opening in the next couple of weeks, is one such example. Once fully developed, it will support young people aged 18 to 30 with 60 affordable, self-contained flats on land that forms part of the Rolls-Royce estate. It is about not just providing a roof, but enabling independence, employment and long-term stability, and it is possible because of the partnership between the YMCA, Homes England, Rolls-Royce, community groups and individuals donating and fundraising to help keep rents affordable. The Minister would be very welcome to come and visit.
With ambitions to deliver 10,000 affordable homes, YMCA and similar organisations will be vital partners in meeting the Government’s housing goals, particularly when it comes to creating genuinely affordable homes for younger people. As such, the Government continuing to engage with charitable providers, so that 100%-affordable housing projects get support, will help to ensure that the needs of young people are sufficiently recognised.
It is clear that this Government are serious about tackling the housing crisis, and about who it is hitting hardest. Government plans are essential, because they are quite literally building the foundations of a housing system that will work for the next generation. We must all play our part to ensure that they succeed. With Derby College Group becoming one of the new construction technical excellence colleges, we are ensuring the skills we need to build those foundations.
Andrew George (St Ives) (LD)
It is a pleasure to serve under your chairmanship, Ms Butler, and I congratulate my hon. Friend the Member for Mid Dunbartonshire (Susan Murray) on her opening remarks.
Other speakers have referred to the issues and difficulties that young people today are experiencing. They are not facing a storm but enduring a prolonged storm, and I fear that unless there are further changes to Government policy, they will have to continue to endure that storm.
I declare an interest as a former chief executive of a registered provider of housing—a housing association, or at least a community land trust—and I now sit as a volunteer on the board of Cornwall Community Land Trust. That organisation, along with many others, is also facing a perfect storm. In part, that is the result of the so-called “benefits of Brexit”, in that we have taken back control of the colour of our passports but lost control of construction inflation in this country—in part, thanks to Brexit. As a result, a large number of homes are shovel-ready, but work is unable to start on site as a result of the simple fact of Brexit.
One of the biggest pressures being faced by young people in our area is a planning system that was changed on 12 December last year through changes to the national planning policy framework. That resulted in the introduction of new standard housing methods, which the Minister is clearly well aware of. I agree with the values that the Labour Government are trying to advance: to try to address the desperate housing needs across this country. I am of course professionally and politically very committed to achieving that aim. However, the changes have actually proven to be counterproductive.
In Cornwall, we now have to deliver 4,421 homes every year instead of the previous target of 2,600, and we must show that we have a five-year land supply. However, it is simply impossible to do that overnight, as local authorities around the country are well aware. Consequently, we are no longer able to defend the exception sites that we had wanted to deliver around the edges of all of our communities in Cornwall. Indeed, there have been appeals on permissions previously granted for affordable homes that are now being converted to allow for smaller numbers, and for unaffordable homes. There, the changes have been proven to be counter- productive.
The Minister knows full well that in Cornwall we are not nimbys. Our housing stock has grown faster than that of almost anywhere else in the country; we have almost tripled our housing stock in the last 60 years. Yet, the housing problems of local people have got significantly worse. We need to look much more widely at the way in which the planning system works.
As far as rural exception sites are concerned, the rural exception should not be an exception; it should be the rural norm. Our whole approach to delivering homes on the edges of our communities means that applicants must demonstrate that they will meet need rather than greed. The whole planning system is tipped entirely in a direction that is opposite to the one that I think we in this Chamber today would like policy to go.
Young people have to compete in a market in which—the Minister knows this because I have raised it several times—the tax system is tipped heavily in favour of second residences. A person with a second home can flip their property from council tax to business rates, apply for small business rate relief and then pay nothing at all. That has to be subsidised by the rest of us through the tax system. In the last 10 years in Cornwall alone, in excess of half a billion pounds of taxpayers’ money has gone into the pockets of wealthy second-home owners. We should put that money into first homes for young people. The situation is inequitable and I am surprised that a Labour Government are not prepared to challenge and change that simple fact in order to properly address the issue.
Andrew George
The Minister objects. I am sorry but the small business rate relief is still available. The tax loopholes available are still there. Perhaps the Minister can put me right on that, if he wishes.
The right hon. Member for Islington North (Jeremy Corbyn) is right that we need rent controls as well as the Renters’ Rights Act. As well as the stick for private landlords, we should offer them a carrot: tax incentives should be available to landlords who provide decent homes and lower rents. There is a lot that we can do. Young people need to see that we set housing targets based on need rather than greed, that we are able to turn exception sites into the rural norm, and that we enable the intermediate market with, yes, rent to buy but also rent to discount sale. We have established that model in Cornwall and it could be used much more widely to help young people.
John Whitby (Derbyshire Dales) (Lab)
It is a pleasure to serve under your chairship, Ms Butler. I thank the hon. Member for Mid Dunbartonshire (Susan Murray) for securing this important debate. Young people face challenges with housing in every part of the country, and in rural communities such as Derbyshire Dales there are compounding pressures of exorbitant prices, high rents and a lack of access to jobs and public services. I have heard from many constituents, whether parents or young people, who fear being priced out of the communities that they grew up in.
As in all areas of the country, house prices in Derbyshire Dales have risen significantly in recent years, far outstripping local wages and leaving many young people unable to buy—and increasingly unable to rent in the few available properties. The challenge of affordability is exacerbated by the supply challenge we face, especially in the national park. There is a clear and ongoing need for affordable housing, especially homes for social rent, but it has to be in the communities that need it, not just where big developers will make the most money.
Some villages in the national park are crying out for housing, most clearly where ageing populations see declining numbers enrol at local primary schools. Without affordable housing and additional investment in transport links and connectivity, there are few pull factors for young families or professionals. In many areas we also see the impact of high numbers of second homes and holiday lets: they make up a quarter of all residential properties in some villages in my constituency, according to the Local Democracy Reporting Service. It is therefore a struggle for the number of new builds to outstrip the number lost to second homes and holiday lets.
In the parts of the constituency that sit outside the national park—and I am sure this applies right across the country—we regularly see developers try to wriggle out of their obligations to build affordable and social housing. We end up with yet more four-bed and five-bed properties because that is presumably where the big bucks lie, but that does little to help our young people get on to the housing ladder. We need a mix of housing but it has to include starter homes, affordable homes and social housing. It is clear that young families are being squeezed out. Time will tell whether more action on second homes will be required, beyond the doubling of council tax and the increase in stamp duty. We need action on empty properties. We need to increase the housing supply, of affordable housing, in the communities that need it most and we need to invest in the services and connectivity that are needed.
Andrew George
The hon. Gentleman raises once again the issue of second homes. He is well aware that the Liberal Democrats have proposed a change in the use class system to introduce a new use class for non-permanent occupancy. The introduction of such a thing would allow local communities to limit the number of second homes. It could be used as a tool to control expansion of the number of second homes and holiday lets.
John Whitby
I would be more than happy with local authorities having the capacity to limit holiday lets and so on—that is not a bad idea at all.
It should not be too much to ask that a young person can live in the community that they grew up in.
Gideon Amos (Taunton and Wellington) (LD)
It is a pleasure to serve under you in the Chair, Ms Butler. My hon. Friend the Member for Mid Dunbartonshire (Susan Murray) was the driving force behind securing this debate, the application for which I supported, and I congratulate her on doing so. I should declare an interest as a social landlord. I thank all other Members who have taken part in this important debate, including my hon. Friend the Member for St Ives (Andrew George), who restated the excellent case for planning controls on second homes.
I support that proposal because at its heart, housing is the single biggest issue affecting young people’s lives. Whether owning or renting, housing dominates their futures. A decent and affordable home is fundamental and the starting point for all other freedoms. That is why it was a Liberal Government who invented council housing and rolled it out. Liberals such as William Beveridge identified poor housing as the chief cause of squalor—one of the giants that any progressive Government would want to overcome.
The Liberal Democrats welcome the Government’s commitment to the £3.9 billion per year for social and affordable housing, but we urge them to go further and faster; I will return to how my party would do that. We also campaigned for an end to no-fault evictions and therefore supported the Renters’ Rights Act. Ending no-fault evictions was long overdue; the Conservatives failed to deliver on that.
While pragmatic improvements to the planning system are always welcome, the Government’s planning changes, which are focused on printing permissions for private sector housebuilders at the expense of locally elected councillors and communities having their say, will not bring the lower house prices that young people desperately need. That never has, and it never will. We need an approach that will not only deliver lower rents but help a new generation get the chance to buy a home of their own. That was an aspiration that felt achievable for my generation, but for too many younger people, seems like a fantasy. It is an injustice that we need to address.
Average deposits have more than doubled as a share of income in almost every region of the country compared with 30 years ago, and that is even higher in London. Saving for a deposit in the first place has never been harder, because rents are higher than ever both in real terms and as a percentage of income, as we have heard from other hon. Members. Nearly half of 24-year-olds are now living at home with their parents, up from just over a third a decade ago. As one of my constituents put it, he has paid more in rent over the last 20 years than the value of a house, yet he does not own one breeze block and has little hope of his three children getting a home of their own.
For the most vulnerable young people, the consequences go further than deferred aspiration. Last year, an estimated 124,000 young people approached their local authority because they were homeless or at risk of homelessness—a 6% rise on the previous year. One young person is facing homelessness every four minutes. That pushes people out of education and work, and into a cycle that is hard to escape. Crisis found that 58% of employers are less likely to hire someone experiencing homelessness, and the welfare system is not helping. Under-35s are only eligible for the shared accommodation rate—a lower housing benefit entitlement to cover shared accommodation, at a time when the number of houses in multiple occupation has fallen by 10% since 2019. The shared accommodation rate is a false economy. Our manifesto committed to abolishing it in its application to homeless people. They should not be penalised for being homeless.
Many leaseholders who have bought are facing potential negative equity as the cost of remediation or unfair and mounting service charges and ground rents accumulate. It is time to abolish residential leasehold and cap unfair and unreasonable service and management charges. I hope that the forthcoming Commonhold and Leasehold Reform Bill will do so. The previous Conservative Government had its chance. Their answer was right to buy, which stripped over 1.5 million council houses from the stock since 1980. We would give councils the power to end right to buy in their areas.
The Conservatives’ other approach was Help to Buy, through which they spent £25 billion on an equity loan scheme. What did we get in return? The Institute for Fiscal Studies published research this week showing that Help to Buy made a very limited difference to affordability for first-time buyers, and the mortgage guarantee scheme only really made a difference to the maximum house price for the highest incomes. It also likely drove prices higher by fuelling a sellers’ market with extra cash. Imagine if that money had been invested in social housing instead. The Liberal Democrats do not just imagine that; our manifesto set out a commitment to 150,000 social homes per year, with an extra £6 billion per year in funding to roll them out, or £30 billion over the Parliament.
This is what we need to bring about: housing that young people can genuinely afford. In addition to social and council rental homes, we would develop a new generation of rent to own. Instead of removing the rights of local communities and councillors, we would take a different approach to secure affordable homes to buy. Our approach would prioritise essential infrastructure first, such as GPs, so that it came before new homes—no doctors, no development.
We need a different approach, and I encourage the Government to make further use of the powers that the Conservatives, to give them credit, put on the statute book, which the current Government have extended to town and parish councils, to acquire land at existing use value, and to ensure that it is raising sufficient funding from levies on development to increase the delivery of homes that young people can afford. After all, it is for our environment and communities that we want new homes to be built, and the voices of people and nature should therefore not be excluded from the process.
Young people need an affordable route out of private renting. That means a serious, funded social house building programme, including tenures specifically designed for young people, and capping rent rises in the way that we proposed during the passage of the Renters’ Rights Act 2025, so that young people can actually save—for example, for a deposit on a new home of their own.
Finally, there is another quick win sitting right in front of the Government. Lib Dem councils such as Somerset want to build more, but their borrowing is maxed out. If the Government will not increase the £3.9 billion a year for council and social housing to the £6 billion a year that we would like to see, will they look at writing off part of the decades-old housing revenue account debt? If they did so, my Liberal Democrat Somerset councillor colleagues could build at least another 630 new council houses. I would welcome further discussion with the Minister on that matter in any meeting that is granted.
Young people are not asking for much; they simply want the same chances that previous generations took for granted. They deserve a new generation of council and social rent homes—150,000 a year—and low-cost rent to own, which is an affordable route to home ownership, and that is what the Liberal Democrats in government would deliver.
Gareth Bacon (Orpington) (Con)
This is the first time I have served with you in the Chair, Ms Butler. It is a pleasure to do so, and to take part in this debate about the housing needs of young people. I thank the hon. Members for Mid Dunbartonshire (Susan Murray) and for Taunton and Wellington (Gideon Amos) for raising this important topic.
The housing needs of young people are multifaceted, with experiences ranging from those in temporary accommodation to those in the private rented sector, those who own their home and those who, for whatever reason, unfortunately find themselves sleeping rough. However, what is clear is that the Government are overseeing a growing problem, and forecasts for the rest of this Parliament predict further misery for young people, whether they are seeking their first home or merely a stable home.
One of the core issues behind the housing problem facing young people is a lack of supply, and the axing of measures that were designed to bolster demand. The dream of home ownership should be a reality for every hard-working person in this country, on which I think there is collective agreement in this room, but that is not the case. The Government have not yet done enough to make that dream a reality.
For example, recent ONS figures show that the Government’s record in house building is not just a sorry sight; in fact, it is significantly worsening. The statistics show that house building in England is on track to fall to its lowest level in more than a decade. During this Government’s first 15 months in office, just 175,290 homes were completed in England—a far cry from the lofty target of 300,000 needed to meet their manifesto pledge to build 1.5 million homes by the end of this Parliament in 2029.
That crash is not showing signs of improvement either, with the three months to September 2025 seeing the number of dwellings drop to 30,880—the weakest quarter since the pandemic. Based on the pace recorded in the first three quarters of 2025, England is set for the lowest number of annual completions for over a decade, totalling just a measly 130,000. Those figures come alongside a release from the Ministry of Housing, Communities and Local Government last November, which showed that the number of net new additional dwellings in England was 208,600 in the Government’s first year in power—a 6% drop from 2023-24 during the Conservative Government’s final year in office. Some 190,600 new homes were built, which was a fall of 8,000, or 4%, from 2023-24, once again suggesting that the Government are on course to fall well short of their 1.5 million homes pledge. If they fail to increase the rate of house building, there will be fewer than 1 million new homes completed by 2029, which is well short of their target.
What does that mean for young people trying to get on the housing ladder? It means it is becoming only more difficult to buy a home, not easier, and that young people are being failed by the Government. It is not just in housing supply that Whitehall currently presents more hinderances than help for young people. Demand for homes is far from insignificant in this country, not least among young people, but the Government are doing almost nothing to help that demand yield results. By November 2024, having been in office for just four months, they had taken an axe to the previous Government’s measures to get people on the housing ladder by cutting right to buy, first-time buyer stamp duty relief and the affordable homes to purchase programme. That has done nothing to help an already unaffordable housing market. It has in fact moved one of life’s primary assets—the ability to purchase one’s own home—further out of the reach of young people.
Young people already face huge challenges in buying a home. For example, the average age of a first-time buyer in England has climbed to 34, as pointed out by the hon. Member for Mid Dunbartonshire. New research shows the growing difficulty of getting on to the housing ladder, with the average deposit worth around a 10th more than a person’s yearly salary. Research also shows that the average age is rapidly being pushed up by the collapse of the portion of first-time buyers aged under 25. They now make up just 6%, despite having made up one quarter of those buying their first home in the 1990s. To compound the misery, more than half of first-time buyers now need two incomes to make a purchase.
Of course, it is important to consider not just those who are fortunate enough to consider buying their first home, but those who are renting, in social housing or in no house at all. On renting, a recent and very informative report by Centrepoint found that one third of young people in the private rental sector reported discrimination by landlords or agents, with the biggest issue being employment status. As unemployment among 16 to 24-year-olds hits 16% as a direct result of the Government’s economic policies—a higher rate than during the pandemic—on the current trajectory, this issue will only worsen for young people, not improve. On top of that, young people face the prospect of a reduced supply of rental housing and, correspondingly, higher rents, which we are beginning to see on the back of the Government’s rental reforms.
For young people in social housing, the picture is no brighter. In the same report, Centrepoint highlighted that there are approximately 130,000 young households on housing registers. That means that if social housing were allocated at its current rate, with no new social housing applications from young households filed, it would still take more than six years to clear existing housing registers. To say the least, that is not a positive state of affairs. I hope the Minister will set out a clear path to addressing it in a couple of minutes’ time.
There is also a need to tackle the frightening rates of youth homelessness and young people staying in temporary accommodation. I am sure we all agree that no one should enter adulthood without the stability of a permanent and safe home, but under this Government, rough sleeping has hit its highest level since records began. More young people were staying in temporary accommodation, and for longer periods, in 2024-25, and 123,934 young people faced or were at risk of homelessness between April 2024 and March 2025—a 6% increase in just a year.
I doubt that the Government have done that on purpose, but young people deserve better. They deserve safe and affordable homes with demand-side support to make the dream of home ownership a reality. That is why the Conservative party has pledged that a future Conservative Government will abolish stamp duty on primary residences. It is a bad tax, and one that needs to be abolished on primary residences to get the housing market moving and to give young people a better chance of getting on to the property ladder. I call on the Minister to get behind that plan, to reverse his Department’s recent failures, to get Britain building, and to get young people to obtain a real stake in their community, their society and their own lives through affordable and targeted housing.
The Minister for Housing and Planning (Matthew Pennycook)
It is a pleasure to serve with you in the Chair, Ms Butler. I congratulate the hon. Members for Mid Dunbartonshire (Susan Murray) and for Taunton and Wellington (Gideon Amos) on securing this important debate. I also thank all hon. Members who have participated for their thoughtful contributions.
It has been a very wide-ranging debate, as I assumed it would be from the title. It has covered a range of issues including—from memory—empty homes, short-term lets, building materials costs, rural exemption sites, care leavers, housing allocations, social housing and housing association regulation. I will not be able to cover all of those points, but I will try my best to cover as many as possible. I am more than happy to follow up with individual Members on specific points, as well as to meet the Liberal Democrat Front Benchers and wider team, which I enjoy doing on occasion as their spokes- person, the hon. Member for Taunton and Wellington, will know.
As the House is acutely aware, England remains in the grip of an acute and entrenched housing crisis. Over a number of decades, the combination of a sharp reduction in the nation’s social housing stock and rapid house price inflation, partly driven by increased demand for housing as an investment product, have squeezed both social renting and home ownership. For many years, an expanding private rented sector absorbed some of the resulting pressure, but post-2015 changes in tax treatment have seen the rate of rental sector growth slow. The result is a crisis of housing availability, affordability and quality that is blighting the lives of people of all ages. However, the youngest are among the hardest hit.
House prices have more than doubled since 1997 compared with incomes, locking an entire generation out of home ownership. We have traded a number of statistics, but the one that stands out to me is that first-time buyer numbers fell to a 10-year low in 2023, and that those under 30 are now less than half as likely to own a home as they were in 1990. That gap has created a stark divide between those who can draw on family support and those who cannot, as the hon. Member for Mid Dunbartonshire mentioned in her opening remarks. That has concentrated housing wealth in ever fewer hands, entrenched social division and disadvantage and seen too many young people delaying life choices, including growing a family. It has also led to them paying more for less security. At the same time, increasing numbers of young people are spending longer in the private rented sector and facing high costs, insecurity and inconsistent standards because alternatives are out of reach.
England’s housing crisis has many causes. We have debated them over many months in this House as the Government have taken forward a number of our reforms. Chief among them is a failure over many decades to build enough homes of all tenures. For years, housing supply lagged well behind the needs of our population as well as comparative European countries. That is why we have placed so much emphasis over the past 21 months on making the necessary reforms to ensure that we have high and sustainable rates of house building over the coming years. We will get those high and sustainable rates of house building.
I thank the shadow Minister, the hon. Member for Orpington (Gareth Bacon), for detailing the consequences of the decisions that the previous Government took, not least to abolish housing targets. We are seeing them feed through, but there are green shoots. Housing starts are up 24% on the comparable quarter last year in the latest statistical release.
With a view to ensuring that housing need is met in full, our reforms include the biggest overhaul of the planning system in decades, as well as the largest boost in social and affordable housing investment in a generation through our 10-year, £39 billion social and affordable homes programme. Of that, 60% will be allocated towards social rented homes, reflecting the Government’s prioritisation of that form of tenure.
The Liberal Democrat spokesman often calls for 150,000 homes a year. I would love to see his grant-rate calculations to back up the claim that he can get that for £6 billion a year. That is a wild underestimation. Perhaps he will share those calculations with me on some future occasion when we meet to discuss this issue.
Alongside increasing supply, we are taking action to support young people who aspire to home ownership. We have acted to widen access to mortgages. Following the Prime Minister’s call to action last year, the Financial Conduct Authority clarified its rules on affordability testing. As a result, most lenders now allow borrowers to borrow about 10% more than they could have at the start of last year. On top of that, the Bank of England has eased its loan-to-income rules, enabling tens of thousands of additional first-time buyers to get on the ladder.
The Chancellor of the Exchequer has also delivered on our manifesto commitment to launch a permanent mortgage guarantee scheme, supporting the availability of high loan-to-value mortgages for buyers with deposits as small as 5%. That is an important backstop, particularly when there is volatility in the mortgage market, as we are currently seeing in response to the conflict in the middle east, which I will address more fully in a moment.
We have also taken steps—this is why I slightly took issue with the hon. Member for St Ives (Andrew George)—to rebalance the market in favour of first-time buyers, including through higher stamp duty rates on additional dwellings, council tax premiums on second homes, reforms to the taxation of property income and, as he knows, the abolition of the furnished holiday lets tax regime, which has removed tax incentives that previously existed for owners of short-term lets over long-term landlords. I know that he has—
Matthew Pennycook
I will not give way, because we are continuing a very long exchange that we have had over many months. I know he has other proposals on taxation that he would like to see happen, but I am just making the point that it is slightly unfair to say that the Government have taken no action in this regard and have not gripped that issue. We have made serious reforms to rebalance that.
Andrew George
I am not saying that the Government have done nothing, but the changes to furnished holiday lets and double council tax, for example, were actually introduced by the previous Government. The Minister has simply implemented them, which is welcome. I was simply talking about the massive, gaping tax loophole involving industrial levels of flipping second homes to take advantage of the opportunity to apply for small business rate relief and pay nothing at all. That is simply favouring thousands of very wealthy people on their second properties. Surely a Labour Government have to close that one.
Matthew Pennycook
The hon. Gentleman has made that point before, and he knows that I am well aware of the issue. We continue to keep under review measures relating to taxation, as well as looking at, as he knows, the additional powers that we might give local authorities to help them deal with particularly acute concentrations of both short-term lets and second homes. As I say, we have had this debate over many months on both the pros and cons of licensing regimes and planning control powers in that regard. It is an issue that we keep under close review.
We also have a number of Government-backed offers to directly help first-time buyers. That obviously includes shared ownership, which we continue to support while improving the model to strengthen long-term affordability, transparency and fairness for buyers. The lifetime ISA continues to be available to help aspiring buyers save towards a deposit, and the Treasury will shortly consult on a new first-time buyer product to replace the lifetime ISA and remove the need for a withdrawal charge.
As a result of all those measures, we have begun to see early improvements. First-time buyer mortgage numbers increased to over 329,000 in 2024, a 16% increase on the previous year.
As I have said, we are clear-eyed about the pressures arising in the mortgage market from instability in the middle east. Our assessment is that mortgage availability remains strong. Conditions are not comparable to late 2022, and first-time buyers should still be able to get on the housing ladder, particularly with support from brokers to find competitive options. However, uncertainty about interest rates may slow the improvement that we have been seeing in first-time buyer numbers, and we will continue to monitor the situation closely.
I should briefly turn to the home buying and selling process, because helping young people into home ownership is not only about raising a deposit or securing a mortgage. Transactions currently take nearly five months to complete on average, and around one in three falls through, leaving first-time buyers out of pocket and too often back at square one. That is why we are committed to reforming the process to make it quicker, cheaper and more transparent. As hon. Members are aware, we consulted on a package of reforms to do that, including ensuring that key information is available up front before an offer is made, improving the quality and accountability of property professionals, and introducing binding contracts to reduce the wasted costs and heartache that come when a transaction collapses.
I want to touch briefly on other areas of focus, because supply is not the only thing we have focused on. As hon. Members have said, we are on the verge of transforming the private rented sector through the implementation of our Renters’ Rights Act. The right hon. Member for Islington North (Jeremy Corbyn) mentioned when that Act “finally comes into effect”, and he does not have long to wait. From 1 May, the first phase of our reforms will give renters greater stability and security, stronger protections against unreasonable rent increases and an end to exploitative practices such as rental bidding wars and excessive demands for rent in advance.
We are also progressing the reforms necessary to bring the feudal leasehold system to an end, so that the dream of home ownership is made real for millions of young leasehold homeowners across the country. Again, I say to the Liberal Democrat spokesman that I would love to know what he means by “abolition”. Is it now the position of the Liberal Democrats that they would end approximately 5 million leases overnight and do what established commonhold associations across the country fear? The Liberal Democrats have to explain what they mean, rather than just throwing out terminology that does not correspond to a really difficult and challenging transition, which we are overseeing, away from the broken leasehold system and towards that commonhold future. We are progressing those reforms, switching on the powers that are already on the statute book and, as the hon. Member knows, progressing our draft Commonhold and Leasehold Reform Bill.
Our overall aim is expanded housing choice and availability, and improved security and affordability across tenures.
Jeremy Corbyn
Before the Minister sits down, could he say anything about his Department’s approach to the large housing associations? I increasingly hear stories in my area—as the Minister probably does in his—that they are selling off properties when there is a change of tenancy to give themselves a capital asset, and they are then spending it somewhere else. It ends up with a process of social cleansing in the central parts of all our big cities.
Matthew Pennycook
I am aware of the point that the right hon. Member raises. To respond to his wider point about oversight, like all affordable providers of social housing, housing associations are held to the standards overseen by the regulator following the very welcome introduction of the Social Housing (Regulation) Act 2023 under the previous Government. The regulator has the powers necessary to ensure that individual providers, such as the ones he mentions, are held to those regulatory standards. If he wants to follow up with some of the specific constituency cases he has mentioned, I am more than happy to respond.
This debate underlines a point that the Government accept without qualification and that I have heard from lots of hon. Members outside this Chamber: that the housing market has to work better for young people. That means: increasing supply, especially of social and affordable housing; supporting first-time buyers; fixing a home buying process that is too slow and uncertain; transforming the private rented sector so that it provides security and decency; and bringing the feudal leasehold system to an end by making commonhold the default tenure and improving the leasehold model so that existing leaseholders can more cheaply and easily enfranchise and convert to commonhold—which I hope they will do in very large numbers.
Andrew George
I believe the Minister has until 10 past 3 if he wishes. He has not addressed the issue I raised regarding the counterproductive impact of the changes to the national planning policy framework, particularly for edge-of-community rural exception sites. A wholesale change of planning is happening. Those sites were originally going to be affordable-led, and now developers can put in planning applications to ensure that those sites are entirely unaffordable because of the Government’s policy on five-year land supply.
Matthew Pennycook
In all candour, I am not entirely sure that I follow the hon. Gentleman’s point. However, he will know from the recent consultation on a revised national planning policy framework that we propose to strengthen national policy in respect of rural exception sites. I know, given his keen interest in the subject, that he will have responded to the consultation. We are currently analysing the feedback with a view to determining final policy in due course.
There are no quick fixes to any of this, and we are committed to the long-term decisions needed to ensure that young people can access secure, decent and affordable homes, and with them, the opportunity to build stable lives and strong communities. I thank hon. Members for their contributions this afternoon.
Susan Murray
I thank everyone who has taken part in the debate today. They all realise how important it is for young people to have a stable home, whether they come from a looked-after background, are looking for an affordable property or are in the fortunate position of trying to find a property to buy.
I thank the Minister for coming along today and for his comments. It is the privilege of Government to take action that matches the rhetoric. We heard from my hon. Friend the Member for West Dunbartonshire (Douglas McAllister) that the Scottish Government have failed in that. I look forward to this Government making affordable accommodation available for young people.
Question put and agreed to.
Resolved,
That this House has considered the housing needs of young people.