Hello everyone.

My name is Ms. Wyatt and I am so pleased that you could join us here today for our citizenship lesson.

Welcome to today's lesson on how do financial systems affect access to housing in the UK from the unit How Can We Prepare Well for Financial Decision Making? By the end of today's lesson, you will be able to explain what housing options are available in the UK and how renters are protected by the law.

We'll be using the following keywords throughout our lesson today, and they are mortgage, renting, social housing, and renters.

Mortgage is a loan from a bank or building society to help buy a house.

It's paid back usually over a period of up to 25 years with interest.

Renting is paying money regularly, usually monthly, to live in a home that you do not own.

Social housing are homes provided by the government, local government, or housing association at lower rents to help people who cannot afford to rent or buy on the private market.

And renters are people who live in a rented home.

In today's lesson on how the financial systems affect access to housing in the UK, we will look at two questions.

So the first part is gonna explore what housing options are available in the UK and then secondly, how are renters protected by the law.

So when you're ready, let's begin today's lesson.

There are three main housing options in the UK and these are buying a home with a mortgage, renting privately, or renting social housing.

Buying a home usually means taking out a mortgage from a bank, building society, or another lender.

There are lots of different types of mortgages, but the main ones are concerned with interest rates.

So a fixed interest rate means that your rate is fixed for a certain period of time, often one to five years, so you know exactly what your monthly payments are for the fixed period.

Or variable.

So your rate is variable and the lender decides, so your monthly payments can be changed regularly.

And tracker.

So your rate tracks the rate of the Bank of England.

It's variable and therefore can change every month.

So the average house price was as follows in each part of the UK.

So Scotland was around 180,000 pounds in January, 2025 and up to 4.

6 in a year.

Northern Ireland was 183,000 in October to December 2024 and up to 9% in a year.

And England was 291,000 pounds in January, 2025 up to 4.

8% or 13,000 pounds in a year.

And Wales was 210,000 pounds in January, 2025, up to 6% or 12,000 in a year.

So due to the current high house prices, you will need to have more than just the money for a mortgage.

You'll need a good credit history, you'll need a stable job, a deposit of at least five to 10% of the house price.

And this is because the lender wants to know that you have enough money to pay the loan back.

The lender needs to know that you are reliable and you're trustworthy to be able to say, "I will be able to pay these instalments back." So if you need 10% in deposit in England for an average priced house, you need to save approximately 29,100 pounds.

This makes buying a house particularly difficult for young people.

Buying a house is known as joining the property ladder, and this is the idea that people start by buying a small or affordable home and then gradually move to bigger or more expensive properties as their income and savings grow.

So let's answer the questions below.

We have what is a mortgage and what is the property ladder? So let's pause the video and have a go at answering these two questions.

Okay, so what is a mortgage? Hopefully we said a loan from a bank or building society to help buy a house.

You pay it back monthly over 25 years with interest.

What's the property ladder? Well, it's the idea that people start by buying a small or affordable home and then gradually move to bigger or more expensive properties as their income and savings grow.

So if you answered those two questions correctly, well done you.

So private renting is a more flexible option, especially for young people or those who move around for work.

Buying a house is like buying goods, whereas renting a house is like buying a service.

So you pay per month to stay in a property that belongs to someone else.

So you can pay for a room, a flat, or the whole house.

Renting is quicker and does not require a deposit as large as buying, but renters do not own their homes and they can face rising rents and the risk of the house owner wanting to sell, which means they could be ordered to leave their rented property.

Rental costs in February, 2025 were high in the UK and continue to rise in most areas.

The average rent for each part of the UK was Scotland was 998 pounds a month.

Northern Ireland was 832 pounds a month, but the most up-to-date figures are from November, 2024.

England was 1,381 pounds a month.

And Wales was 785 pounds a month.

So we can see from this that England had the highest rental costs.

Prices for rent vary widely across England.

For example, in 2024, in London, a one-bedroom flat might cost you on average 2047 pounds a month, whereas in Burnley it will cost you 566 pounds a month.

So depending on where you are in the country in England, depends on how much your rent will cost.

So how much you pay in rent will depend on the size of the property or the room, the location, whether it has a private bathroom, whether bills are included or not, how much profit your landlord wants to make, and the rental market and interest rates at that time.

Social housing is another option mainly for people in low incomes, but anyone can apply who cannot afford private renting.

These homes are owned by the UK government, local governments, or housing associations, and the rent is cheaper than private renting.

However, there is a long waiting list for social housing in many parts of the UK, especially in cities like London and Manchester.

Let's track our understandings so far then.

So let's read the statements below, decide if they are true or false, and tick the correct column.

So pause the video, take some time to read through these statements, and work out if they're true or false.

Okay, let's go through our answers.

So the first one said a mortgage is when you pay rent monthly.

That is false.

Well done if we said it's false.

Renters own the homes they live in.

This is also false.

Renters do not own the homes they live in.

They're renting it from someone else.

Social housing is cheaper than private renting.

This is true.

Renting is more flexible than buying a home.

This is also true.

And it's cheaper to rent in England than Scotland.

Well, we know from the figures that we've just read out that this is false.

So well done if we got these right.

In 2024, a new trend became more popular called shared ownership.

This is when people buy a share, like 25% or 50% of a property, and then rent the rest from a housing association or local government.

It helps people who cannot afford a full mortgage but still want to own part of a home.

However, shared ownership still involves paying rent and service charges, so costs can add up and it is not always as affordable as it seems. For example, Zara is 23 and has got her first full-time job in Bedfordshire.

Zara earns 22,000 pounds a year and wants to move out but cannot afford a mortgage deposit.

Private renting would cost her half her salary and she would not be paying anything off for the future.

The waiting list for social housing is over two years long.

Zara decides to apply for a shared ownership flat so she can start building equity.

Now this is the part of your home's value that you can actually own.

So the home value minus what you still owe on the mortgage, even though she still has to pay rent, she's still saving for the future.

Another newer option is build-to-rent homes.

Now these are flats and houses built just for renting, often by big companies.

They offer longer contracts, so you get to sustain it longer, fixed rent increases, and extras like onsite gyms. They are very popular in cities, especially with young professionals.

However, they are not affordable for everyone.

For example, in cities like Birmingham and Leeds, these homes can still cost over 1,300 pounds per month in 2025.

These statements are all incorrect, so let's change them to make each one correct.

So we have shared ownership means renting a whole house.

Social housing is only for people who want to buy.

And build-to-rent homes are always affordable.

So these aren't right, are they? So let's pause the video and have a go at correcting these.

Okay, let's have a look at our answers.

So the first one was supposed to say shared ownership means buying part of a house and renting the rest.

Social housing is for people on low incomes who cannot afford to buy.

And build-to-rent homes are not always affordable.

So have a look at your sentences and see if they match up to ours and if they do, well done.

For this task, I would like us to complete the chart with key information about the housing options available in the UK.

So we have mortgage, private renting, shared ownership, and build-to-rent homes.

So in this chart, we need to give a description of this type of housing, an advantage, so a good thing, and a disadvantage, so a not-so-good thing.

So pause the video, give yourself some time to complete this chart.

Okay, so your completed chart with key information about the housing options should look something like this.

So a mortgage is a loan to help you buy a home which you pay back monthly with interest.

An advantage of this is that you're working towards owning your own home.

A disadvantage is that you need a big deposit and must pay interest.

Private renting is paying monthly to live in a home that is owned by someone else.

An advantage is that it's flexible and does not need a big deposit.

However, disadvantage is that renters do not own the home and rents can rise.

We then have shared ownership, which is you buy part of a home and pay rent on the rest.

An advantage is that it helps people get on the property ladder with a smaller deposit, but a disadvantage is that you still have to pay rent and extra service fees.

And then we have build-to-rent homes.

So these are modern homes built just for renting often by big companies.

An advantage is that they offer longer contracts and they have extras like gyms in them.

However, they can be too expensive for many people.

So if your chart looks similar to ours, good job.

We have now looked at what housing options are available in the UK and we're going to move on to look at how are renters protected by the law.

In the UK, renters have legal rights to protect them from unsafe homes and unfair treatment.

The main rights in place to protect renters come under the following laws, which is the Landlords and Tenant Act 1985, the Landlords and Tenant Act of 1987, the Housing Act of 1988, the Tenant Act of 2019, the Social Housing Regulation Act of 2023, Awaab's Law 2024, Renters Reform Bill 2024 should become law in summer 2025.

So these laws give renters the rights to live in a property that is safe and in a good state of repair, have their deposit returned, challenge excessively high charges, know who their landlord is, live in the property undisturbed, see an Energy Performance Certificate, be protected from unfair eviction and unfair rent, and have a written agreement if they have a fixed term tenancy of more than three years.

If the Renter's Reform Bill becomes law, it will add more rights for renters, including introducing a new system for evicting tenants where the landlord has grounds for asking them to leave like unpaid rent.

An end to no-fault evictions.

also called section 21 evictions, where renters could be told to leave without any reason.

New tenants will have a 12 month protected period where they cannot be evicted if the landlord wants to move in or sell the property, giving all tenants a legal right to request to keep a pet.

So let's have a think.

What are three rights that renters have by law? Have a think.

So we could have said live in a safe property in a good state of repair, have their deposit returned at the end of their tenancy, and be protected from unfair eviction and unfair rent.

So Awaab's Law of 2024 was introduced as an amendment to Social Housing Regulation Act of 2023.

After a toddler, Awaab Ishak, died in 2020 due to mould in a rented flat in Rochdale.

This law makes it a legal requirement for social housing landlords to fix health hazards like damp and mould within strict time limits.

Awaab's Law is now helping protect renters across the UK.

For example, from October, 2025, landlords in social housing must investigate reports of damp and mould within 14 days and begin remedial action within seven days of hazards that pose a significant risk to tenant's health and safety.

Awaab's Law came after public outrage and a full investigation including an inquest and an inquiry to why he died.

People protested, started petitions, and marched through the streets.

This is a clear example of how laws can change when people raise awareness through campaigning and advocate for the benefits of protection of others.

So let's fill in the missing words in these sentences.

We have three missing words.

Let's pause the video and have a go at working out what these missing words could be.

Okay, let's go through our answers.

So Awaab's Law 2024 protects renters in social housing.

Landlords must investigate reports of damp and mould within 14 days and act within seven days to fix problems like damp once inspected.

So we should have had social, 14, and seven as our missing words.

Well done if we got that right.

Renters also have protection from unfair rent increases.

If you live in social housing, your rent can only go up by a set amount each year based on inflation.

So private renters can challenge unfair rent increases through a first-tier tribunal or property chamber.

There are rental unions that can help with any problems you might have while renting a property.

There is a large support network for renters, for example, new online services provided by charities provide toolkits to work out whether your rent increase is legal or not.

Charities like Shelter, the national housing and homelessness charity, provides information and advice on a range of housing problems. Citizens Advice, the national charity and organisation network of local charities, offers confidential benefits, legal housing, and debt advice to renters.

So let's check our understanding.

What charities can help renters with advice and support? Is it Shelter, Kidney Research UK, WaterAid, or Citizens Advice? Which ones do we think can help? So charities that can help renters with advice and support are Shelter and Citizens Advice.

WaterAid and Kidney Research UK are charities that help other things, but the charities that can help renters with advice and support are Shelter and Citizens Advice.

Well done if we got those right.

For this task, I would like us to create a slogan and write one paragraph as part of a campaign to raise awareness of how renters are protected by the law in the UK.

Laura says, "You should include the words mortgage, renting, social housing, and renters." So when you're ready, pause the video and have a good go at this task.

Okay, so your campaign might look a little bit like ours.

So our slogan was Rights for Renters: Safe, Fair, and Protected.

We said renting is a more flexible way of living in the UK, especially for renters who cannot yet afford a mortgage.

Proposed laws like the Renter's Reform Bill aim to stop on unfair evictions while Awaab's Law 2024 make sure homes, especially in social housing, are safe from hazards like damp and mould.

Renters are also protected from unfair rent increases and unfair treatment.

Organisations like Shelter and Citizens Advice give support if someone's rights are being ignored.

These laws and services can help make sure renters are treated fairly and that renting is a secure and respected way to live.

So your campaign might look similar to ours, but it also might be different with a different slogan.

And that's great also.

Well done.

I would now like to summarise our lesson on how the financial systems affect access to housing in the UK.

So the different housing options available in the UK include buying with a mortgage, private renting, social housing, and shared ownership.

Each option has advantages and disadvantages dependent on a person's income, stability, and future plans.

Financial systems such as interest rates and income levels have a big impact on whether people can afford to buy a home or need to rent with rising prices in 2025 making it hard to get on the property ladder.

Renters are protected by laws like Awaab's Law 2024, which ensures safe and healthy living conditions.

And the Renters Reform Bill, which plans to end unfair evictions and help renters feel more secure.

Support for renters is available through organisations like Shelter and Citizens Advice.

Thank you for all of your efforts in today's lesson.

I really hope you've learned a lot about financial systems and how they can affect access to housing within the UK.

I hope to see you in the next one.

Bye-bye.