The North East will be the only area building enough homes, according to think tank, the Institute for Public Policy Research (IPPR) with the biggest shortfalls in London, the South East of England, the East, and Yorkshire and Humberside.
A slower economy would suppress the need to build, estimated the think tank, bringing the need down to 200,000 a year, but if the economy bounces back that need could rise to 280,000 homes.
Regionally-speaking, the biggest effect would be in London, with a housing gap of 325,000 homes, followed by Yorkshire and Humberside with 151,000 homes.
“If the rate of house building does not radically increase, we face a growing housing crisis. Whether the economy performs well or poorly, a serious gap looms between housing supply and demand,” said IPPR director Nick Pearce.
“Our ageing population and rising expectations for living standards are going to drive up demand, but if there is no change in housing policy it will seriously hold back supply.”
The government plans to introduce a package of reforms aimed to boost house building, including changes to the planning system and a New Homes Bonus launching in April, set to reward local authorities for each home built.
