Report

Saying Yes to more housing and higher productivity

10.6.24 2024

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As productivity lags, wages can’t keep up with rents and mortgages; so, for far too many, a home of their own now seems out of reach. We simply haven’t built enough of them, undermining our young people’s potential for a prosperous future.

 

Decades of well-intentioned but overly complex planning regulations have created a system that hinders, rather than enables, development. The planning system is enough to drive anyone mad, but for young people trying to get a foot on the property ladder, it’s especially crushing. The complexity and sheer uncertainty cripple our ability to build the homes they need. This stagnant productivity is helping make buying a home an impossible dream for too many young people.

We can’t solve a housing crisis that disproportionately hurts the next generation with a system built on hesitation and delay. A malaise has set in. But there are people who believe we can turn the tide.

There is a growing movement, those who say “Yes, in my backyard” (YIMBY), who believe that solutions do lie in embracing new development, revitalising our urban centres, saying yes to new homes in our towns and cities, and yes to increased opportunity.

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Yes, in our backyard

For too long, discussions about housing have been dominated by those clinging stubbornly to the status quo. The NIMBY (Not in my backyard) movement is empowered by generally wealthier, mainly retired people, who have ‘time on their hands’. But a fresh movement is gaining momentum, one spearheaded by voices demanding action, not more excuses, and one that needs to stand up to the challenge of the NIMBYs.

YIMBYs believe that to solve the housing crisis, we need to build more homes and to revitalise our cities, we need greater density. As an industry, we need to lend our support to the YIMBY movement and empower them to disrupt the status quo. Young workers shouldn’t have to settle for long commutes or sacrifice proximity to job opportunities due to exorbitant rents or mortgages. Including a mix of affordable housing options within thriving urban centres promotes social mobility, allowing people on lower incomes to live closer to job opportunities, potentially leading to career growth and a higher quality of life, and builds a more productive workforce. Not to mention the opportunities this can offer for regeneration of our town and city centres.

For too long, we’ve approached housing as a one size fits all solution. To build a more productive, inclusive Britain, we need a housing market that reflects the diverse needs of residents across the economic spectrum. It’s not enough to just build homes – we need to build the right homes and in the right locations.

This means understanding that a young professional starting their career, or a young, professional family looking for a community to raise their children, have housing needs distinct from an empty nester or retiree. We also need to build more retirement and elderly housing that will persuade the empty nesters to move. This will in return free up more of the existing housing stock for younger generations.

And it’s not just about the houses. At its core, the YIMBY movement is about empowering a generation shut out of the housing market. It’s about giving young people a seat at the table and ensuring their voices are heard when decisions are made that will shape their future. This isn’t some abstract ideal - there are direct links between YIMBY principles and Britain’s economic potential. Furthermore, our politicians (whether at the national or local level) need to sit up and listen to the YIMBYs. After all, the younger generations are our future.

Housing should be a bridge, not a barrier

Imagine a UK where housing is no barrier to opportunity. Where accessible options near thriving job centres mean workers aren’t burdened by long, costly commutes or forced to turn down better opportunities in other areas. This boosts labour mobility – businesses gain reliable access to the talent they need, and workers can find roles that best suit their skills and ambitions.

Increased urban density also unlocks what economists call the “agglomeration effect.” Businesses benefit from being close to suppliers, competitors, and a wider pool of skilled workers. This proximity promotes innovation and the collaborative environment that drives productivity forward and retains a young, dynamic workforce, the lifeblood of any robust economy.

Providing a diverse housing stock is also simply good business. By including various housing types, developers create projects that are more robust and adaptable to changing market conditions. This increased financial viability further encourages investment and the ongoing creation of housing supply – crucial for driving affordability and economic growth.

Open the door for everyone

In my discussions with colleagues around housing and urban development, it’s become increasingly clear that we need to do more than just talk among ourselves. We need fresh perspectives, especially from the younger generation who are not just our future leaders but also the ones who will live with the consequences of our decisions today.

Our industry, rich with experience and knowledge, has the potential to mentor, guide, and support young voices looking to make a difference in the urban landscape. The YIMBY movement can’t reach its full potential without the support and engagement of professionals like us.

We must open the door to young professionals by actively engaging with and supporting them. Whether it’s through mentorship, collaboration on projects, or advocating for policies that encourage diverse and innovative housing solutions, we have a role to play. Let’s not underestimate the impact we can make by listening to the younger generation.

Our industry thrives on innovation and adaptability, and by supporting the YIMBY movement, we’re not just helping planners say “yes” more often to new housing, we’re saying “yes” to a more productive UK.

Get in touch with our team

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Mike Derbyshire

Partner, Head of Planning

Mike leads Bidwells’ planning practice. He is a passionate and vastly experienced advocate for thoughtful, well-designed development and a thought leader on the future of planning in England.

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Mark Buddle

Partner, Head of Residential Development

Mark leads our residential development work and oversees a total strategic landbank for our clients which rarely dips below 100,000 plots.

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The Productivity Engine

The Productivity Engine is our latest groundbreaking report that addresses the UK's stagnating productivity. What powers economic productivity? An easier question to answer may be what doesn’t. 

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