The UK housing market in 2025 is characterized by modest price growth and high rental demand. Home ownership comprises about 65% of households, while roughly 35% are renters—these include private and social renters. Median monthly rent for new leases is about £1,287, translating to approximately €1,510. With the average apartment size in the UK around 70 sqm, this equates to a median rent of roughly €22 per sqm per month. The average price to buy a flat is £191,600, or about €225,600, making the median price per sqm to buy an apartment around €3,225. Publicly owned or “social housing” constitutes about 17% of all UK homes, playing a crucial role for vulnerable or low-income groups by providing rents at about half the market rates. Social housing is usually managed by local councils or housing associations, offering long-term tenancies and strong tenant rights. Social housing is different from general “affordable housing,” which is meant for a broader group with slightly higher rents but still below market value. Thus, in UK cities, public housing refers specifically to social housing, which is more targeted and subsidized than other affordable options. In summary: about 65% own their homes, 35% rent, with public/social housing making up 17% of total stock, delivering critical affordability in a market with high price and rent pressures. All currency values converted to euros at current rates.

The UK is facing a serious housing crisis marked by high prices, rising rents, and limited supply. Over 358,000 households sought help to avoid homelessness in the past year, and homelessness is on the rise. Local authorities are spending about €2 billion annually on temporary accommodation for nearly 300,000 homeless households. There are long waiting lists for social housing, exceeding one million households, with many discouraged from applying altogether. Overcrowding remains a significant problem, affecting 8.2% of households in social rented housing and 5.1% in private rentals. The crisis disproportionately impacts Black, Asian, and ethnic minority communities, who have seen declines in homeownership rates and experience higher levels of overcrowding and poor housing quality. Ethnic minority households are about a quarter less likely to own their homes compared to White households, with many unable to accumulate property wealth. Younger people and those on low incomes are especially pressured, with 26% of the lowest-income households facing high housing costs relative to their income. High mortgage interest rates have pushed hundreds of thousands into relative poverty after housing costs, and an aging population adds further strain. The effects of the housing crisis are felt across generations but are most severe among vulnerable groups, ethnic minorities, and the young. Het VK heeft te maken met een ernstige wooncrisis, met een tekort aan betaalbare woningen, stijgende huren en grote ongelijkheid, vooral voor minderheidsgroepen en jongeren.

The UK government is addressing the housing crisis through several initiatives focused on affordable and sustainable housing. The Spending Review announced a £39 billion Social and Affordable Homes Programme, aiming to deliver 300,000 new homes over a decade, with 180,000 for social rent. This program is part of a broader strategy to boost supply and improve housing quality and safety. Recent targets include building 1.5 million homes over five years, with councils given mandatory targets to ensure this goal is met. The government has also updated the National Planning Policy Framework to prioritize brownfield development and review greenbelt boundaries to meet housing needs. Programs include providing rent stability through annual increases linked to inflation plus one percent, offering £2.5 billion in low-interest loans for new developments, and implementing changes to the Right to Buy scheme to preserve social housing stock. Additionally, the government aims to modernize housing standards and introduce energy efficiency measures in social housing. These activities are designed to increase affordability and sustainability in the housing sector.

Housing cooperatives in the UK represent a small but growing segment of the housing landscape, particularly within the broader framework of community-led housing. Despite the UK’s long tradition of cooperative principles, housing co-ops are estimated to account for only about 3% of homes delivered under the Affordable Homes Programme, meaning their share of total national housing units is considerably below 1%. In London, for example, estimates suggest there are around 300 active housing cooperatives, but there is no comprehensive register, and the sector is fragmented. Cooperative housing is valued for its emphasis on community control, affordability, and democratic management, offering non-speculative, secure tenancies. There is renewed interest due to challenges in the mainstream housing market, such as high prices, persistent housing shortages, and the need for sustainable development. Recent policy dynamics include government commitments to double the size of the cooperative and mutual sector, and strategies to diversify housing delivery. Homes England has begun to prioritize community-led housing within its strategic objectives, and collaborative sector-government efforts are underway to improve access to finance, enhance delivery capacity, and reform policy and land access to support cooperative growth. However, sector development is constrained by low institutional capacity, limited public understanding, and regulatory hurdles. Overall, cooperative housing remains a niche solution but is increasingly recognized in national strategies to address affordability, community empowerment, and housing innovation.

The UK’s housing crisis has prompted action from a wide spectrum of individuals and organisations. The new Labour government has set a bold target of building 1.5 million homes over five years, focusing not only on quantity but also on affordability and sustainability. Policy discussions involve mandating housing targets for councils, using ‘grey belt’ land for development, and attracting private investment through new housing finance tools. Beyond government, the Local Government Association and various city councils are advocating for increased social housing and better planning policies. Academic collaborators with substantial expertise in affordable housing include Heriot-Watt University, which has led pivotal research on social housing needs, and City & Guilds, which is active in skills training for the construction sector. In the real estate sector, both large developers and SMEs are integral, with calls for more support to smaller building firms and innovative property management companies like EVO, which uses technology to streamline maintenance for rental stock. Startups such as those in the proptech space (e.g., Checkatrade) are piloting initiatives to tackle the skills gap and deliver energy-efficient homes. NGOs and think tanks such as Crisis, Shelter, and the Institute for Public Policy Research play key roles in advocacy and policy research, focusing on homelessness and social housing. Cross-sector collaboration—among government, academia, industry, and civil society—is widely recognized as essential for comprehensive, long-term solutions.