The UK must build 685 homes a day to meet the annual recommended target of 250,000 homes a year, new figures show.
Over the past 12 years UK house builders have fallen short of this target by 210 homes per day at 475, below 70% of the target.
Analysis by Aldermore has found that if current building levels are maintained the UK’s housing shortfall will rise by a further 318,632 homes by 2020.
Charles Haresnape, group managing director of Mortgages at Aldermore, said: “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.”
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