Future of Cities - Future of UK Housing Supply 2022

A F FO R DA B I L I T Y

No matter which scenario materialises, we need to address the chronic shortage of housing in the UK. Fundamentally, there is a requirement for additional homes to be delivered. While commercial real estate grapples with the need to retrofit rather than redevelop, this is only a small part of the solution in the residential sector considering the scale of additional housing that is needed.

Over the last two decades, the diversity of residential stock in the UK has increased significantly, owing to the introduction of PRS and the more nascent co-living, as well as an increase in the supply of purpose-built student housing and senior living. This diversity of accommodation only needs to increase if we are to better match the needs of the population, and better drive social value through the delivery of real estate.

Current housing delivery targets have not been reached - on average we are 60,000 homes short per year of the stated 300,000 target. The effect is not only one of a mismatch between supply and demand, which puts home ownership out of reach for an increasing proportion of the population. Undersupply increases the number of people living at home for longer periods of time, impairs labour mobility, and increases levels of homelessness.

HOMES DELIVERED PER YEAR

300,000 240,000

TARGET

HOMES SHORT PER YEAR 60,000

DELIVERY

Source: Department for Levelling Up, Housing and Communities

11 The Future of UK Housing Supply |