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Spotlight: On track to solving the housing crisis?

The housebuilding industry is on track to deliver the Government’s target of one million new homes by 2020. The challenge is to continue expanding supply in the highest-demand areas to improve affordability

Rapid expansion of the housebuilding industry means we are on track to deliver one million homes by 2020. However, there remains an annual shortfall of 104,000 homes in the highest-demand areas. New entrants to the industry and new ideas are needed to deliver a range of tenures and products. See ''

Across most of the country, new housing supply is almost meeting demand, particularly where housing affordability is better than average. But in higher-demand areas in the south east of England, an increase in supply is still needed to ease affordability pressures. See ''

The average new home in the south of England is affordable to only 20% of households. To secure the next step up in delivery, the development industry must build homes that are affordable to more people. See ''

Much more land must be released in high-demand areas to reduce competition, lower land values, and enable new homes to be sold at levels the mass market can afford. It needs to be recognised this will limit the capacity for sales proceeds to fund infrastructure and affordable housing via S106 and CIL. See ''

For the Housing White Paper to fix the housing market, the Government must take the problem of undersupply in the south east seriously. There needs to be a regional market-led strategy for land release, including a programme of green belt swaps. See ''

Development in numbers

Development in numbers

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Key contacts

Simon Smith

Simon Smith

Senior Director
Research & Consultancy

Two Exchange Square

+852 2842 4573

 

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