Young families are finding it increasingly difficult to find an adequate home to raise their families. IF student volunteer, Maddy Spitzer, explains why this is and how it can be fixed.
The Housing Crisis
The UK housing crisis is often presented as simply a housing shortage. While it is clear that we have not built anywhere near enough homes, this is only part of the problem. Equally important is whether the country’s housing stock matches the needs of the people living in it and is being used efficiently. Increasingly, this is not the case, and it is young people and new families that are being harmed by this uneven distribution.
Overcrowding versus under-occupation
Nearly one million UK households are officially overcrowded, with close to two million children growing up in homes without sufficient personal space to study or play. This lack of space and privacy is a growing concern for young people, as it directly impacts their mental health and development. Yet, as previously mentioned, the underlying issue isn’t merely low housing supply, but how we utilise the space we already have.
Data from the English Housing Survey (2024-25) reveals a troubling divide: 3% of families are squeezed into overcrowded households, whilst an astonishing 40% of homes remain officially under-occupied. Houses containing two or more spare bedrooms are predominantly owned by older households.
This divide paints a picture of a battle between generations. Older generations are “stockpiling” spare rooms while younger families are left with none. Yet, this image is not fully accurate. It does reveal part of the problem, but it is a symptom of greater issues. This is the fact that the British government has stopped building suitable family homes and has failed to plan for an ageing population.
Where have the family homes gone?
So what has caused this gap in housing planning? Over the past two decades, developers have increasingly prioritised one- and two-bedroom properties. The number of new homes with three or more bedrooms has rapidly fallen since the late 1990s.
This is a consequence of planning policy moving to focus on the number of “units” delivered, not taking into consideration whether those homes match the needs of the households who will live in them.
The reason? Profit and ease. Developers favour smaller homes because they are simpler to build on compact sites, rarely receive objections in the planning system, and often produce higher financial returns per square metre.
What this means for young families
As a result, the issue most visible for young and new families is the inflated competition for a shrinking range of family-sized homes.
As IF has previously argued, improving the way the existing housing supply is allocated is crucial. But this alone would not be enough. There must also be an increase in the total supply by building more family homes.
Why older homeowners stay put
Encouraging older homeowners to downsize is easier said than done. Numerous reasons and obstacles mean that older individuals are both unwilling and unable to downsize. For many, the decision not to downsize seems totally rational. There is the undeniable emotional factor of sentimentality and attachment to a home they have lived in for decades.
Practically, there is also the comfort of having neighbours, friends, and local services nearby. Further, the “largeness” of a house can be functional, with spare rooms used by visiting family and extra space assisting independent living.
There are also financial barriers, including transaction costs, ranging from estate agent fees to stamp duty, which can be a significant factor in the decision to remain in homes.
How has policy failed?
However, perhaps the most crucial element in older people’s decision not to downsize is the lack of suitable housing for their needs.
This element reflects a double policy failure. True, Britain has failed to supply the appropriate number of family homes for younger households. However, it has also under-supplied good quality, age-appropriate housing, including extra care and other forms of specialist housing, that would make downsizing more appealing for older people.
This shows a structural housing problem with intergenerational consequences, rather than merely a generational conflict.
The shortage of specialist housing is crucial. These include retirement housing and extra care housing, which enables older people to live in their own homes with the addition of on-site care and support. This housing becomes a viable means for older people to enjoy security, accessibility, and socialisation. Research shows that when these options are available, many older people are willing to move.
What needs to change
Housing supply is narrow and unequal across the UK. Under-occupation is not just a personal preference, but a reflection of barriers to downsizing and a lack of alternative housing that can aid independence and care. This has been to the detriment of young families forced to live in overcrowded housing due to a lack of available larger homes.
Britain does not just lack housing space, it lacks homes that match the needs that people of different ages require to live in them.
Addressing this issue would include building more three- and four-bedroom homes for families, alongside age-friendly housing near established communities. Improving existing stock would allow people to stay local while freeing up space for new families.
None of these solutions includes forcing anyone to move, but they would provide more suitable and practical options to help housing stock work more efficiently in the UK. Ultimately, it would ease the pressure on young families to access family homes and provide a comfortable life.