Spotlight: On track to

solving the housing crisis?

UK Development
On track to solving the housing crisis?

4 October 2017, by Savills Research

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 'Six factors shaping the future of new housing development'

 

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 'Meeting the million milestone'

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 'New solutions to old problems'

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 'The new standard'

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 'New solutions to old problems'

Development in numbers

 
Development in numbers

Articles from Spotlight: UK Development – 2017

Meeting the million milestone

Figures show that the housebuilding industry has responded to policies aimed at stimulating supply and is on track to deliver the Government’s one million homes pledge

New solutions to old problems

We need to think differently about the fundamentals of development if the number of new homes is going to increase to meet demand

The new standard

04 October 2017

The new standard

We examine what the Government’s new assessment of housing need means for delivery and increasing land supply

Six factors shaping the future of new housing development

We examine six issues that will influence future demand and delivery

 
 

Receive the latest research

Key contacts

Chris Buckle

Chris Buckle

Director
Residential Research

Savills Margaret Street

+44 (0) 207 016 3881

 

Emily Williams

Emily Williams

Associate
Residential Research

Savills Margaret Street

+44 (0) 20 7016 3896

 

Lucy Greenwood

Lucy Greenwood

Associate
Residential Research and Consultancy

Savills Margaret Street

+44 (0) 20 7016 3882

 

Jim Ward

Jim Ward

Director
Residential Research and Consultancy

Savills Margaret Street

+44 (0) 20 7409 8841