We’re Arguing About Landlords Instead of Fixing Housing

The housing crisis isn't primarily about landlords. It's about a shortage of homes. While some landlords extract value without giving much back, the real issue is systemic: we don't build enough.

Spend enough time in any housing conversation and you'll hear a familiar theme. Landlords are the problem. They're seen as holding homes that others should be able to buy, pushing up prices, and making it harder for people to get on the ladder.

It's an understandable reaction. But while that frustration is valid, the conclusion is incomplete. We're arguing about landlords instead of fixing the thing that actually matters: we don't have enough homes.

The scale of the shortfall

Homes built in England (2024):  217,911  — lowest since 2017, excl. Covid

Government target (Standard Method):  370,000  — homes per year

Estimated UK housing gap vs Europe:  6.5 million  — Centre for Policy Studies, 2025

The numbers tell a stark story. England built just 217,911 homes in 2024 — the lowest figure since 2017, and roughly 40% below what the government's own Standard Method says is needed. The Centre for Policy Studies estimates the UK has a structural shortage of 6.5 million homes compared to similar European countries. Britain has just 446 homes per 1,000 people — the second-worst rate in Europe.

New homes built in England vs government target (thousands)

Sources: MHCLG, Savills Research, House of Commons Library

For decades, housing supply has failed to keep up with demand. More people, more households, and more fragmentation in how we live means more homes are needed per person than ever before. Every region in England failed to build enough homes to meet the government's updated requirements in 2024.

"Every region in England failed to build enough homes to meet the government's updated requirements in 2024."

It's a logical argument with a flawed premise

The case against landlords sounds intuitive. A landlord owns a property. You want to own a property. Remove the landlord, and maybe that home becomes available to buy. It's simple — and that's why it's compelling.

But it only works if the number of homes stays the same. That's the flaw. Landlords aren't removing supply. They're operating within a system where supply was already constrained long before they entered the picture.

The rental market serves a real purpose

UK households renting privately (2024):  19%  — approx. 5.1 million households

Average monthly rent, Great Britain:  £1,327  — up from £917/mo in December 2014

The private rented sector now houses around 19% of all UK households. It provides flexibility for people to move for work, adapt to life changes, and access housing without needing a deposit. A third of private renting households include dependent children. Renting isn't a failure state — it's a different product, with different trade-offs, and for many people at many stages of life, it's essential.

Private rented sector: households (millions) and share of all tenures

Sources: ONS, English Housing Survey 2023–24

Not all landlords create value — and that criticism is valid

That said, not all landlords operate the same way. Some do the bare minimum while pushing rents as high as possible. Repairs are slow, standards slip, and communication is poor. In economic terms, this is the extraction of economic rent: income is maximised without creating matching value.

People don't object to landlords making money. They object to paying more and receiving less. But this is a quality problem, not a supply problem. Removing those landlords doesn't create more homes. It just changes who owns the ones that already exist.

In England, private renters on a median income now spend 36.3% of their gross income on rent — above the 30% affordability threshold. In London, that figure rises to 41.6%.

Share of income spent on private rent, by region (2024)

Source: ONS Private Rental Affordability, England 2024

Why supply is constrained: a compounding problem

If the issue is supply, why aren't we building more? The answer isn't one barrier — it's a combination that compounds. England operates a discretionary planning system where every decision is made case-by-case, unlike the rules-based zoning systems common across Europe. Even projects approved by planners can be rejected by councils, creating risk and uncertainty that discourages investment.

European evidence suggests that if the UK had built to the average homes-per-head rate, house prices would be approximately £75,000 lower. To close the gap by 2040, the UK would need to build 565,000 homes per year — more than double the current rate.

Homes per 1,000 people: UK vs European peers

Source: Centre for Policy Studies, 2025

Fix the supply imbalance, and quality follows

There's a direct link between supply constraints and poor standards in the rental market. When demand massively outstrips supply, tenants have fewer options. Properties get filled regardless of condition. Landlords don't need to compete on quality to secure occupancy — value extraction becomes easier.

Fix the supply imbalance, and something changes: landlords have to compete on experience, not just availability. The market forces that currently allow poor practice would themselves create an incentive for better practice.

A functioning rental market enables social mobility

A flexible rental market isn't just about housing — it's about movement. It allows people to relocate for work, leave difficult situations, take risks, and navigate transitions between life stages. Without that flexibility, opportunity becomes more fixed. And when opportunity becomes fixed, inequality tends to deepen.

At the sharpest edge of the supply imbalance is homelessness. When supply tightens, temporary accommodation fills up, councils stretch beyond capacity, and access to the private rental market becomes harder — particularly for those without strong financial backing. What starts as a supply problem becomes a social outcome.

Key takeaways

•    The housing crisis is fundamentally a supply problem — England built just 218k homes in 2024, against a target of 370k+.

•    The UK has 6.5 million fewer homes than comparable European countries, and the second-worst homes-per-capita rate in Europe.

•    Some landlords extract economic rent without creating value, and that criticism is valid — but it's a quality problem, not a supply solution.

•    Supply constraints reduce competition and allow poor standards to persist. More supply forces landlords to compete on quality.

•    Planning reform and viability — not just landlord regulation — is the lever that changes outcomes.

Blaming landlords is emotionally satisfying. It gives the problem a face. But until we address supply, we're not solving the problem — we're just arguing over who gets access to something there isn't enough of.