The Government faces a massive one million shortfall in building new homes, new research by Shelter shows.
Despite a commitment by Gordon Brown to build three million new homes by 2020, the Government has not done enough to tackle the devastating effects of the credit crunch on homebuilding.
The Homes for the Future report, launched at Shelter’s ROOF magazine conference today, shows the recent collapse in housebuilding will mean at least 500,000 fewer homes being built by the Government’s 2020 deadline.
And with the need for new homes being estimated at 450,000 higher than the three million target, the total housing shortfall will be almost one million.
The research shows 242,000 additional homes are needed each year to meet the backlog and rising need, including:
* 145,000 market homes (60 per cent of total)
* 30,000 intermediate, or low cost homes, (12 per cent)
* 67,000 social rented homes (28 per cent)
The report also shows the number of households is projected to increase by nearly 4.5 million between 2006 and 2026, to 25.9 million households, with around 70 per cent of which will consist of one-person households.
Shelter 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.’
He added: ‘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.
‘Achieving these levels of housebuilding would require the construction industry not only to recover, but also to build substantial further capacity thereafter.’
Mr Sampson added: ‘Shelter is calling for a ‘new deal for housing’ to deliver the Government’s housing targets. The housing market downturn has created a different environment that needs a new approach, with higher levels of public subsidy than at present.
‘The Government must provide decisive leadership now to ensure that we build sufficient numbers of social rented homes over the long term to meet the growing housing need highlighted in this research.
‘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.’
