UK faces one million homes 'shortfall' by 2020 » Housing » 24dash.com

The UK will face a shortfall of one million homes by 2020 due to the current downturn in the housebuilding industry, a charity warned today.

Housing charity Shelter said the recent collapse in housebuilding meant the Government's target of having three million homes built by 2020 was likely to be at least 500,000 properties short.

It added that the three million target was around 450,000 homes lower than the number it estimated would be needed by 2020, giving a shortfall of nearly one million properties.

The group warned that unless more was done to plug the shortfall, the UK risked a repeat of the boom and bust cycle, with a shortage of supply pushing up prices again following the current downturn.

Speaking at Shelter's Roof conference today, chief executive Adam Sampson said: "This report shows exactly how the Government is already falling behind on its homebuilding target.

"If we don't build, we risk escalating house price inflation and repeating the cycle of housing boom and bust that has caused our current economic problems.

"If the current slowdown in output continues for more than a couple of years, it is unlikely the Government's current targets to deliver two million additional homes by 2016, increasing to three million by 2020, can be met."

The group said its research showed that 242,000 homes needed to be built each year to meet demand, with the total made up of 145,000 homes to be sold on the open market, 30,000 low cost homes and 67,000 for social renting.

It warned that the number of households in the UK is projected to increase by nearly 4.5 million between 2006 and 2026 to 25.9 million, around 70% of which would be one-person households.

The group said the housing market downturn had created a new environment and this needed a fresh approach from the Government, with higher levels of public subsidy.

It called on the Government to provide "decisive leadership" to ensure that sufficient numbers of social rented homes were built over the long term to meet the growing housing need.

Mr Sampson said: "Without a renewed commitment, there will not be adequate homes to house the families of the future and more people will be living in overcrowded conditions, and stuck on housing waiting lists and in temporary accommodation."