UK housing shortage gets worse despite falling prices

"The need for new homes was out of sync with supply even before the credit crunch took hold, and the impact of the slow sales market has severely damaged output, putting home ownership further beyond the reach of many.

"While there are some very competitively-priced properties available in the new homes market, the prevailing lack of mortgage finance has prevented many first-time buyers from making their first purchase.

"House prices are showing strong signs of stabilising, and with housebuilders now having to contend with an imminent supply shortfall, there is a growing concern that housing will become less affordable.

"Developers are doing what they can to maintain a balanced supply of new homes, but property types with the most pressing demand such as affordable family houses, may once again be forced to make way for higher density schemes if greater efforts are not made from government and financial institutions, both to support production and boost sales to first-time buyers in the current market."

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One thought on “UK housing shortage gets worse despite falling prices

  1. Rebecca Trotter

    Whilst I agree with this statement in so much as that there is a distinct lack of affordable housing around the country, anyone working in the housing industry is well aware that land prices and subsequent house prices can vary tremendously dependant on where you reside in the United Kingdom. The principle overriding factor behind the shortage has been caused in the main through property speculation by wealthy individuals and companies. This has deliberately driven up property prices even in the areas which for decades were regarded as low cost housing areas. In some instances, even undesirable locations to live.

    This problem has then been further exacerbated by the increased number of people choosing for whatever reason to live alone. Creating many thousands more homes of single occupancy than this country has ever known. The housing industry has for a number of reasons been slow to react to the changing habits of the population. House builders have not been building housing suitable for single occupancy for many decades. Traditional housing for first time buyers has as a consequence shot up in price, being regarded as suitable for rental by anyone with the capital to purchase buy-to-let properties. This has refuelled the bottom end of the housing market artificially maintaining high prices.

    What is needed is purpose built accommodation suitable for sustainable living by single people. An increase in the number of one bedroom properties being built, developed as high density on niche small plots, with a maximum number of units up to twelve, positioned in and amongst normal detached and semi detached housing, to re-create many of the traditional mixed conurbations that have for many years been bulldozed down.

    These types of developments could easily replace the need for housing at the lower end of the market and can easily be designed to blend in with conservation sites by changing the exterior finish to suit each location.

    Many builders have avoided building one bedroom properties, because the profit margins are too low. Why build one bedroom houses if you can build two or three bedroom with an increase of 40 50 % in profit.

    The countries planning system needs to encourage the construction of more small compact sites inter mixed with other existing housing as one bed room properties.

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