11/06/2022
UK property supply in desperate trouble
This week Boris Johnson announced new measures to try to help those in most need to get onto the UK property ladder. But whilst these minor mortgage tweaks will help some, the intrinsic housing problem persists. In 2019 the government pledged to meet the needed target of 300,000 per year by 2025. 2021 saw a net figure of 216,490 new homes (down from the previous year’s total) meaning an annual deficit of 83,510. The past decade has seen the average number of new homes at just 166,000 per year.
This chronic undersupply means consistent competition and upward pressure on both rents and house prices.
For context on the supply problem, the last time the UK managed to build 300,000 homes in a single year was 1977, the same year the first Star Wars was released in cinemas.
https://www.constructionnews.co.uk/news/financial-news/alarm-as-data-shows-housebuilding-close-to-stagnation-09-06-2022/