Future of Cities - Future of UK Housing Supply 2022

H OW DO WE D E L I V E R MO R E H OM E S FO R OU R C I T Y O F 2 0 4 0 ?

HOUSE BUILDERS INCENTIVES

In the early 1970s, close to 300,000 homes were being delivered, c.40% of which were through local authorities. This now stands at only 1% (DLUHC). House builders now deliver the majority of homes but they have not fully replaced the number of homes previously delivered by local authorities. This is partly a consequence of the perverse incentives that the supply-demand dynamics of our housing market create for house builders.

As long as there is an undersupply of houses, prices will increase (ignoring other economic and geopolitical headwinds), and house builders are reluctant to undermine this. We need to find new ways to encourage private house builders to deliver more homes, especially with economic headwinds signalling a slower housing market, which is usually associated with lower levels of construction.

NUMBER OF NEW HOMES COMPLETED

13 The Future of UK Housing Supply |

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