The newly appointed prime minister’s recent pledge to increase funding for council housing has been welcomed by housing campaigners but is seen as insufficient to address Britain’s deepening housing affordability crisis. Despite commitments to boost the supply of council homes, experts warn that a more fundamental overhaul of the housing system is needed to benefit younger generations increasingly priced out of the market.

For more than two decades, affordable homeownership has slipped beyond reach for many people in their twenties, with average house prices rising at rates far exceeding wage growth. In the late 1980s, the average house cost roughly three to four times an average salary; today, that figure exceeds seven times nationally and approaches 14 times in London. This disparity has pushed the average age of first-time buyers from 26 in 1980 to 35 currently, illustrating a widening gap in accessibility.

Construction of council homes is considered an essential element of the solution but falls short of tackling wider systemic challenges. These include soaring land costs, a dated and bureaucratic planning system, regulatory complexity, and escalating building expenses. These factors combined have driven housing prices to levels likened to an unsustainable inflation rate—far outpacing other essentials such as food.

Housing advocates emphasize three potential paths forward: significantly raising young people’s incomes, drastically lowering house prices, or fundamentally transforming housing policies and supply models. Given the impracticality of the first two, some experts propose a radical alternative dubbed “Home 26,” named after the average age of first-time buyers when homes were more affordable. This strategy calls for a streamlined planning framework that releases land for innovative housing types and tenure options, including self-build, tiny homes, co-living, and multigenerational dwellings tailored to modern needs.

The approach would simplify regulations to enable young people to construct affordable homes independently, such as building high-quality tiny houses in their parents’ back gardens—an option currently hindered by existing planning rules. Advocates also call for the creation of more flexible community models that prioritize genuine affordability and livability over standard housing formats.

Examples from abroad offer models for reform. A development in the Netherlands, comprising over 3,000 homes, is reportedly progressing without traditional planning permissions. There, land is allocated with essential infrastructure in place, and residents are free to build within straightforward rules limiting coverage and height. The emphasis on self-build fosters community engagement and pride, yielding diverse housing stock that contrasts with what is typical in Britain.

Campaigners argue that Britain’s young generation faces a “national scandal,” having been shaped by economic crises, austerity measures, and the impacts of the COVID-19 pandemic, yet lacking viable pathways to homeownership. They call on the government to embrace bold reform rather than incremental adjustments, framing housing as vital national infrastructure that requires a proactive and enabling policy environment.

The housing debate is set to gain further visibility with the premiere of “George Clarke’s Amazing Spaces: First Homes,” a new Channel 4 series that profiles innovative housing projects and personal stories illustrating the challenges and possibilities facing young people striving for affordable homes across the country.