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Housing shortfall to rise by over 300,000 by 2020, says Aldermore

POSTED: 21st November 2016
IN: Newsroom
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Analysis by Aldermore, the specialist lender and savings bank, has found that if current building levels are maintained, the UK’s housing shortfall will rise by a further 318,632 homes by 2020.

The UK’s house building output against the 250,000 figure recommended in the Barker Review in 2004 shows a shortfall of 915,930 houses as of the beginning of 2015.
 
To meet the annual recommended target of 250,000 homes a year, the UK must build 685 homes a day. Over the past twelve years, UK house builders have fallen short of this target by 210 homes per day at 475, below 70% of the target.
 
Commenting on the figures, Charles Haresnape, Group Managing Director, Mortgages, at Aldermore, said:
 
“Those in the house building industry do a tremendous job, especially after the construction industry was crushed during the recession when many good businesses failed due to the economic environment and lack of access to funding which resulted in countless projects being cancelled or mothballed. 
 
“The UK has made steady progress in improving the levels of house building, but it needs to go much further if we are to truly live up to the reputation of a nation of homeowners.
 
“The housing supply crisis has significant knock-on effects, whether for older homeowners who can’t find appropriate properties to downsize to, or younger generations who find themselves unable to effectively save for a deposit due to high rents.
 
“Whilst recent figures show an increase in annual house building, this needs to be sustained and I look forward to the seeing what solutions are proposed in the forthcoming Autumn Statement and anticipated Housing White Paper to make this a reality. Housing policy should no longer be thought of as one group versus another, as this leads to a fragmented market which makes reform more difficult.
 
“The Government’s £3 billion development fund is a positive step in the right direction. I also welcome signals that the Government is minded to relax the height restrictions on new builds; however, far more needs to be done to overcome the supply deficit. The big four house builders cannot be expected to carry this burden by themselves, they need to be complemented by the agility of SME homebuilders, who we see as the key to solving the UK’s housing issues. Steps that can improve competition, will significantly reduce the problem.”
 
*Ends*
For further information, journalists can contact:

Rachael Snelling, PR Manager
Phone:            020 8185 3102
Mobile:            07551 159 534
Email:              rachael.snelling@aldermore.co.uk

Johnathan Priestley, Cicero Group
Mobile:            0207 297 5954
Email:              Johnathan.Priestley@cicero-group.com 

Notes to Editors:

House building numbers between financial years 1979 and 2014 sourced from Department for Communities and Local Government data.

For further information about Aldermore, please review our Notes to Editors page. 

Follow us on Twitter: @AldermoreNews

 

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