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UK "facing up to housing shortfall"

Britain is facing a shortfall of 750,000 homes within the next 15 years, a leading think-tank has predicted.

The Institute for Public Policy Research has claimed that if supply remains at the rate of the last 20 years - roughly 160,000 new homes per year - then the gap between households and available homes could be between 255,000 and 1.2M.

London and the south east will see the worst discrepancies, with Yorkshire and Humberside and the east of England also badly affected, the report says.

The report - which used the Government’s household growth projections - claims London will see a gap of 325,000 homes, while Yorkshire and Humberside will be down 151,000. The gap in the east of England is likely to be 132,000 homes.

The north west would be the only region where demand could be satisfied, with a total of 40,000 extra homes potentially available due to a number of unoccupied homes at present.

IPPR spokesman Nick Pearce said: “We can’t go on as we have done. Britain needs to build more homes. That’s not going to happen without a fundamental review of housing policy. This new analysis shows the serious scale of the problem.”

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