London’s housing crisis is acute, but it’s a symptom of global policy failure
Housing policy has failed on a global scale, it’s time to address the core of the issue, writes Maimunah Mohd Sharif
As renters and homeowners in London and many parts of England know all too well, the scarce supply of properties has pushed prices up and up over the past few decades. More than 11m people in the UK spend more than 40 per cent of their income on housing, the highest proportion in Europe.
But the crisis is far from just a UK issue, with housing policy globally having been a collective failure over the past decades.
In 1948, the Universal Declaration of Human Rights acknowledged the right to an adequate standard of living. In 1976, at the Habitat I Conference in Vancouver, state leaders provided the first clear definition of ‘adequate shelter’ and outlined 64 recommendations on how to achieve it.
Yet, 75 years later, the global housing challenge persists. Approximately 2.8bn people worldwide face housing inadequacies, from homelessness to substandard and unaffordable homes. Only Australia and New Zealand have achieved the Sustainable Development Goal 11 indicators on universal access to adequate, safe and affordable housing.
Across Europe, young people are affected the most. According to FEANTSA (the European Federation of National Organisations Working with the Homeless), in some European capitals, like Amsterdam, Helsinki and Lisbon, the average rent for a one-bedroom apartment is higher than the median income of a young person.
But solving the issue requires a universal shift in perspective – housing must not be seen solely as a commodity.
Investing in adequate and affordable housing is a potent tool for economic recovery, offering job opportunities, creating economic value and filling the housing gap. According to Shelter Scotland, every £100m of public or private finance invested in affordable housing generates £210m in economic output and sustains 1,270 jobs.
Investment in affordable housing brings health and social benefits. A recent study by Habitat for Humanity International shows that equitable access to adequate housing could reduce preventable deaths of 730,000 people annually.
With over 70 per cent of the population projected to reside in cities by 2050 and a global population surpassing 8bn, the need for action is evident.
The second United Nations Habitat Assembly, held in June 2023 in Nairobi, adopted a resolution on adequate and affordable housing for all. Governments and policymakers have reaffirmed their commitment to address urban poverty, homelessness, informality, and inadequate housing and ensure everyone everywhere has access to a safe place to call home.
While tackling the crisis on a global scale will inevitably require tailored and localised solutions, there are three key areas which must universally be focused on.
Taking a data-driven approach is one essential element. We must collect and understand housing data, identify gaps, and calculate housing’s contribution to economic development. We need to ensure we have the right skill sets and legislation to collect local and national housing data and qualitative evidence on the standard of living.
We also must develop policy frameworks recognizing adequate housing as a human right. To ensure housing markets deliver the type of housing that is needed in cities, we need governments to develop targets, standards and monitoring plans, assigning tasks to various agencies and housing actors, while also allocating resources.
Thirdly we need to establish effective collaboration between all government levels – city, regional, and national, involving the entire government in developing affordable housing programs. We cannot leave housing just to the ministry of housing or urban development, considering that adequate homes need basic services, job opportunities and green public spaces.
UN-Habitat stands ready to be a bridge between research, policies and on-the-ground action. With a strengthened mandate of the second United Nations Habitat Assembly and support from governments and international entities, we can turn the dream of adequate and affordable housing into reality.
Let us choose to act and implement our declarations to create a better quality of life and a brighter future for ourselves and generations yet to come.
Maimunah Mohd Sharif is under-secretary-general and executive director of UN-Habitat