England's home supply shortfall set to get worse, reaching a million by 2022
Oct 5, 2017 14:13:41 PM
A shortfall in the number of new homes being built across England is set to worsen in the next half decade, as the gap between the volume of homes being built nationwide and the new demand rising widens.
Data published by the Office for National Statistics (ONS) shows that over the past 12 years, England has faced a shortfall of around 530,000 in terms of new building for the property market, and as such has been unable to meet demand.
And this is not going to get better any time soon, according to Search Acumen, which analysed the official figures and predicted that by 2022, the market will be facing a cumulative shortfall of at least a million homes.
Looking into the data, Search Acumen said that even if the government does meet its promised targets of building as many as 300,000 homes per year between now and 2022, it will not be enough to keep up with growing demand caused by factors such as birth, death and migration.
In fact, the government's doubling of its previous pledge will still only be enough to address the shortfall England's market faces in the short term, meaning new plans are needed in order to improve the situation further ahead.
"The housing market in all corners of England has ground to a halt as people struggle to find a home that fits their needs and their budgets. Our research suggests that, even with housing supposedly higher up the political agenda, the pledges made at the last election won’t do the job of keeping up with demand in the long term after years of under-investment into new housing," said Andrew Lloyd, managing director of Search Acumen.
He added that even as demand remains unwavering, supply continues to struggle to keep pace, and this is a worry for the market moving forward.