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Deficit of at least 600,000 new homes in England

by BestAdvice
13 March 2023
BuildLoan partners with Furness for new self/custom build deals
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England built up a shortfall of at least 600,000 homes from 2011-2021 after population growth outpaced the number of newly built homes, according to analysis from Coventry Building Society.

Census information reveals there were over 3.1 million more adults living in England in 2021 compared to 2011. It is estimated that over two million new homes were needed for these people, yet only 1.4 million new homes were built during this time.

The region with the biggest shortfall of new homes is London. The only region with growth in available homes is the North East. The regional breakdown is as follows:

Area

Estimated
number of
new homes
needed
2011-2021*

Number of new homes built
2011 -2022

Difference
between new households to homes

England

2,047,263

1,401,180

-646,083

London

355,222

207,870

-147,352

South East

378,962

253,130

-125,832

East of England

277,024

172,370

-104,654

South West

253,196

177,190

-76,006

East Midlands

203,416

132,300

-71,116

West Midlands

199,504

129,040

-70,464

North West

210,709

147,790

-62,919

Yorkshire & The Humber

129,064

114,340

-14,724

North East

40,165

67,150

+26,985

*Based on 1.52971 adults in a home. 

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The estimates given are a minimum, as they only take into account the number of people looking to buy a home for the first time. They do not factor in growth in single person households as a result of separations or bereavement.

Jonathan Stinton, head of intermediary relationships at Coventry Building Society, said: “Year after year there’s been a consistent shortfall in capacity to build the homes people need, it’s unsurprising there’s a huge deficit. The problem needs to be addressed now to make sure there are enough homes for everyone who wants to buy or rent a place of their own.

“All eyes will be on the Chancellor this week to see what he has to say about building new homes, but the most important thing will be what action is taken over the coming years. There’s an urgent need to create homes in the right locations, of the right type to meet demand, as well as updating the UK housing stock to meet the challenge of net zero and climate change.”

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