Savills says housing shortfall to reach 1m without more supply
The housing shortfall in England is set to reach 1m homes within 10 years, according to new research from a leading estate agent.
Savills said that England faces an annual housing shortfall of 100,000, a problem that the estate agent said can only be solved by the government boosting the supply of development land in high-demand locations and supporting more property developers.
Savills estimated that with government support, the number of new homes started per year in England could increase from 140,500 – the latest figures for the year to the end of March – to 205,000 by 2020.
“Although we have seen an increase in new homes starts over the last two years, progress could come to a halt if housebuilders are not able to replenish their supply of consented land, particularly in the high-demand markets of Surrey, Hampshire, Berkshire, Cambridgeshire and parts of Suffolk,” Susan Emmett, Savills residential research director said.
Savills said that while growth is dependent on a larger number of planning consents in high-demand markets, it will also require government intervention on the demand side with the continuation of such programmes as Help to Buy.