UK housing shortage fueled by undersupply; senior stamp‑duty cut proposed

The United Kingdom’s chronic shortage of homes stems from a long‑term mismatch between supply and demand. Key drivers include a persistent under‑building of new dwellings (roughly 210,000 completed in 2022/23 against the 300,000 needed), rapid population growth, rising construction costs, the loss of social‑housing stock, slow planning processes, and the treatment of housing as an investment asset. Many existing homes contain empty bedrooms, but weak distribution and affordability—average house price £285,000, a price‑to‑earnings ratio of 8.8—keep first‑time buyers out of the market.

Legal & General chief executive Sir Nigel Wilson argues that reducing or eliminating stamp duty for older adults who downsize into integrated retirement communities could free up vacant homes and release cash for younger families. He proposes limiting the relief to qualifying seniors and targeting the construction of 30,000 energy‑efficient homes per year for the elderly, framing the tax cut as an investment that would boost the overall housing market.