New data analysis from Property Partner shows the scale of housing challenge
According to new data analysis from Property Partner, we need to build 3m new homes in the next 10 years to bring housing supply and demand levels back to the same balance we had in 2007, before we hit the financial crisis.
In the last ten years, we have built less than 1.7m homes. We need to nearly double our rate of housebuilding.
In the 2016 financial year we saw a mere 190,000 new homes added, and earlier this week, it was announced that we hit 217,000 net new additions to the housing stock for the financial year ending in 2017, which is more than we’ve had in any of the last nine years.
But we need an average of 300,000 per year, for ten solid years.
With data stretching back to 2002, there has never been a year recorded in which more than 250,000 homes were built.
If current housebuilding levels continue, projections show that housing demand will outstrip supply across England by 2030.
Property Partner is calling on the Chancellor to announce a major house-building scheme to ensure no less than 3 million homes are built across the next ten years.
Mark Weedon, head of research at Property Partner said: “This should be a key focus for Government. You’ve got Brexit to resolve, and housebuilding. That should be the level of priority afforded to this.”
“We all know there’s a problem with not enough homes being built, but our analysis shows the true scale of the challenge the Government faces.
“A decade of ignoring the problem means we need the next decade to be focused on solving the problem.
“Sajid Javid feels that a ‘bold’ housebuilding programme means building “up to” 300,000 homes a year, that is not bold enough. 300,000 new homes per year should be the minimum target for each of the next ten years.
“Furthermore, the target alone is not enough. Too often Governments set targets but have no plans for achieving them. A target without a plan is meaningless. We need the Government to do more than just say that it will build these new homes, we need them to tell us how they will do it. How will construction be funded and resourced , and how will land be freed up for building on?
“Governments exist to solve big problems facing society, not create them. Let’s hope the Chancellor reflects that responsibility in his Budget next week”.