England faces a shortfall of 750,000 homes by 2025 according to a new report from Government think tank the Institute for Public Policy Research (IPPR).
New analysis of official Government projections show that if the economy bounces back the gap between supply and demand could be equivalent to the entire housing demand of the populations of Birmingham, Liverpool and Newcastle combined.
If housing supply continues at the rate of the last 20 years – around 160,000 additions per year – the gap between the number of households and the number of available homes will be between 255,000 and 1.2 million by 2025.
Using the Government’s own projection for household growth, the East Midlands faces a housing gap of 66,000 homes over the next 14 years.
The report shows that the social housing sector in particular will be under extreme pressure, no matter how the economy performs in future.
Nick Pearce, IPPR director said:
“If the rate of house building doesn’t radically increase, we face a growing housing crisis.”