Britain is in a housing crisis. This fact is so well-known that it would be a cliché to write an article on it. Nevertheless, the impact of the crisis is so widespread and affects the lives of so many, that not writing about this persistent issue is arguably unforgivable.
Small Expectations
Owning a home has been degraded from a social expectation to a desperate dream. Average house prices in the UK are almost nine times higher than the national average annual salary. London especially stands out, with house prices being 14 times the average household income. Renting as an alternative is hardly better, with the annual cost of rent in London standing at an eye-watering £26,316 and sucking away most of that disposable income.
This crisis is not just suffocating people’s finances however, it is drowning their mental health too. The stress of paying high monthly rent fees and the sense of powerlessness that comes with being at the mercy of a landlord can take their toll. Perhaps that’s why renters are twice as likely to suffer from anxiety compared to homeowners.
Britain cannot go on like this. We need to find a new alternative renting model that is affordable and uplifting, rather than grimly oppressive, for renters’ mental health.
Housing co-operatives could be the answer.
A Shared Endeavour
Housing co-ops are built on the principles of mutual aid and shared endeavour, with tenants collectively owning and controlling their residence. Unlike the traditional landlord-tenant model, housing cooperatives are run to benefit renters rather than to pursue profit, making their rent prices lower than average since only house maintenance costs need to be covered. For example, rent at the Sanford housing co-op is only £65 a week, unbelievably low for London. These uncharacteristically low prices give renters of co-ops the financial freedom to spend money on other things. I’m talking about the things that make you happy: books, video games, and eating out with friends and family. The things that make life worthwhile.
But it is not just the low costs that make housing co-ops special. They also have mental health benefits due to how they foster a sense of community among their residents. This communal environment is a natural consequence of the fundamental principle of collective endeavour found in any cooperative. We can see this in a 2019 report from the Wales Co-operative Centre, which examined the outcomes of housing co-ops for residents across Wales and England.
In it, respondents reported feeling positive about being part of a community, connecting with their fellow residents, and working together to solve the challenges the co-op faced. This directly contrasts with how many traditional renters can feel isolated when they must face their problems alone. Similarly, the democratic aspect of housing co-ops, where residents collectively decide how to run the property, was also praised for giving tenants power over this crucial part of their lives. This stands in stark contrast to the powerlessness traditional renters can feel because of the inherent power imbalance between themselves and the landlord.
In short, housing co-ops can help people gain the social connections and emotional support needed to enable them to lead more happier and secure lives.
Are Housing Co-Ops Too Good to be True?
Despite the many benefits of housing cooperatives, their presence remains limited in the UK compared to the rest of Europe. There were approximately 900 housing co-ops in the UK in 2023, which is a respectable 31 per cent increase from 685 in 2018. Still, this number is relatively small compared to the 208,000 found in Denmark. Nor are we anywhere close to Sweden, where 23 per cent of homes are co-ops. In the UK, co-operatives make up a meagre 0.2 per cent of the housing stock.
This discrepancy could be down to a lack of knowledge that housing co-ops even exist as an option. However, it is more likely a consequence of how difficult it is to raise the funds even to start a housing co-op. First, one must deal with the landlord to take over the property — thus running into the ever-present problem of inflated house prices.
A final drawback of housing co-ops is also one of their central strengths: collectivism. With collective ownership comes the pressures of having responsibilities towards each other. Usually, these conflicts are resolved through dialogue, but when relationships break down the cooperation needed to run a housing co-op can become tricky. That feeling of being trapped and anxious may return should communication cease and you find yourself wanting to leave with nowhere to go but back to an unaffordable housing market. It is important to remember that this worst-case scenario is not inevitable and can be avoided with good communication.
With this in mind, we must note that housing co-ops cannot solve the crisis of housing alone. They cannot substitute the need for a new country-wide renewal of social housing, but they can certainly accompany it. The housing co-op is still a model that provides people with a level of affordability, empowerment and fulfilment; reasons that make it a crucial component of the new, fairer housing sector we must build.
So, if you can, why not apply to join a housing co-op? Or, if you are feeling brave, why not get together with fellow renters and start one today?
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