Taylor Wimpey’s Chief Executive, Jennie Daly, is aware of the divisive nature of the housing industry. Born in Derry during the period of political unrest that swept Northern Ireland in 1970, she grew up in a context where “Housing was a significant social and community issue.” The lack of investment led to substantial conflict.
Following World War II, Northern Ireland faced a shortage of municipal housing and protests against anti-Catholic discrimination in housing allocations. Daly, the youngest of four children, recalls her parents living in a third-floor flat with a single water tap on the ground floor before she was born. “At one point, one of my siblings had to move to the countryside to live with my grandmother,” she says, highlighting the difficult choices families faced due to inadequate housing.
These experiences have made Daly particularly sensitive to the current housing divides in the UK, which are evident between young and old, north and south, and the wealthy and the poor. The government is aware of the potential for unrest; Housing Secretary Michael Gove recently warned that young people might turn away from democracy if they can’t afford their own homes. Prime Minister Rishi Sunak has proposed increasing house construction in urban areas to meet new home demands without upsetting shire voters.
National Housing Strategy Needed
Daly, 53, argues for a national housing strategy to address the UK’s “deficit of 4.5 million homes.” She criticizes local plans as “patchy in adoption” and believes that decision-making at the local level is extremely challenging. A national plan, she argues, would allow for a broader context in decision-making, considering factors such as employment, the economy, transport connections, and flood risks.
The challenge, according to Daly, is to increase housing without straining existing community services. She suggests that stamp duty reform could be a way for Chancellor Jeremy Hunt to make an impact. Currently, stamp duty is not charged on real estate purchases below £250,000, but rates increase significantly for more expensive properties. Daly sees merit in reducing stamp duty for lower-priced properties and for downsizers, which could stimulate the market and address issues of overcrowding and underutilization in the housing market.
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Daly reflects on the transformation of the real estate market and questions whether the current generation will achieve the same level of financial stability and housing security as previous ones. She suggests that the concept of the housing ladder, where individuals progressively move to larger and better properties, may no longer be viable. Instead, many first-time buyers are older, likely have a family, and are looking for a larger home to settle in for a long period, marking a shift in how housing is perceived and utilized.
