A new analysis has revealed 1.2 million new homes are needed to meet the demand for property across Britain…
An analysis from the Yorkshire Building Society has warned too few homes have been built since 2004 to meet demand. This has pushed up the cost of house prices.
Using government figures, Yorkshire Building Society found the number of completions since 2004 had not met targets. It highlighted the Barker Review of Housing Supply, which recommended 270,000 home should be built each year in England alone to keep house price inflation under control. However, this figure has never been reached, and it estimated at least 1.2 million new homes would be needed.
Chief economist at the Yorkshire Building Society Andrew McPhillips said: “The Brexit decision and the uncertainty it creates around the prospects for private sector house builders, not to mention the country’s economic outlook, is likely to heighten the housing crisis.
“Addressing the shortage of homes must remain high on the Government’s agenda regardless of the work required following the EU vote.
“We need a clear strategy to deliver the 1.2 million additional homes and options like giving local councils fuller control of existing housing funding, as well as freedom to develop surplus public land, should form a key part of that.
“The longer we leave the supply crisis to worsen, the more difficult it will be to resolve. The UK has failed to build the number of homes needed to meet demand year after year, which has consequently inflated prices and made it even more difficult for those looking to buy.”
A spokesperson for the Department for Communities and Local Government said: “We’ve got the country building again – with the numbers of new homes increased by 25 per cent in the last year alone.
“The Government has set out the most ambitious vision for housing in a generation, doubling the housing budget to deliver on its ambition to build a million new homes.”