Structural Need for Additional Homes
Housing is a key social issue in the UK today.
- Historically, house builders in the UK have failed to develop sufficient new homes to meet the growing demand resulting in structural imbalance in the market.
- An estimated 300,000¹ homes need to be built every year, of which circa 100,000 need to be affordable, to bridge the current supply-demand gap.
- With the increasing shortfall, more and more people are being priced out of traditional homes and becoming reliant on affordable housing.
- Some 1.18million² households are on waiting lists for affordable housing, with only 22,000 completions in 2015/16.
- This undersupply has been further exacerbated following the UK government’s decision to change the affordable housing grant allocation, reducing the amount of capital available and leaving HA’s with a need for alternative sources of funding.
¹ – The Economic Affairs Committee Report
² – UK Government Statistics
³ – Frontier Economics