NAEA Propertymark, in response to the House of Lords Built Environment Committee’s call for evidence, pointed to figures in 2019 and 2020 which said total new build completions only came to 220,600, which was 6,190 more than for 2018 and 2019.
It added total net additional dwellings in 2019 and 2020 was 243,770, 23,000 of which were due to conversions and change of use.
The body continued to say it did not believe the UK government’s target of 300,000 new homes per year accurately reflected housing demand.
It said this was because the target has not been modelled on what is needed for each property tenure across the country and did not consider affordability, such as wage entitlement and wage growth.
Propertymark also said it did not believe the construction sector was able to meet UK housing demand, which it attributed to shortage and heightened cost of materials as well as reduced workforce due to Brexit.
The House of Lords committee, which was created in June this year, aims to examine factors influencing type, tenure and quality of housing needed in the UK, as well as challenges in meeting that demand like skills shortages or issues with the planning system.
Propertymark said to ensure a balance of new homes across the country, a long-term solution to address limited affordability in the private rented sector needed to be created, which would provide more social housing and make renting more affordable and secure.
It also recommended the removal of surcharges on the purchase of additional homes to encourage further investment in the private rented sector, and to construct housing for older generations along with incentives to promote downsizing.
Propertymark added that action on empty homes would also be required and a review on the impact of short-term lets on the private rental sector.
It continued that to meet housing demand, the UK government should review property taxes, following the rush created by the stamp duty holiday, to enable more people to buy and sell their home.
Buy-to-let taxes and other legislation should also be reviewed to encourage landlords to remain in the private rented sector, the body proposed.