Government housing targets are insufficient - NHPAU

A report released today by the National Housing and Planning Advice Unit (NHPAU), has warned ambitious government targets for house building in the UK may not go far enough.

While welcoming the Gordon Brown's commitment to build up to 240,000 new houses a year, the report warns this may still not be enough to ease chronic housing shortages in the UK.

"In the long run the country will need to deliver even more homes if we are to stabilise housing affordability," said Stephen Nickell, one of the writers of the report.

"The NHPAU estimates that about 270,000 new homes a year by 2016 will be required to achieve this."

The report was commissioned in response to the government's own consultation paper Homes for the future: more affordable, more sustainable, and also warns housing may be priced beyond the reach of many would be homeowners in coming years.

On current trends the average house price could rise to ten times average earnings in the UK, by 2026.

While problems would be more severe in London, where property would cost 11 times average earnings, it would be worst in the south-west, 12.9 times earnings, and the south east, 12.4 times earnings.

The NHPAU also suggests argues the quality and location of housing must also be suitable to meet demand.

"By focusing increased levels of house building in the least affordable regions, the NHPAU has shown how it might be possible to stabilise affordability over the long-term," said the report.

In response to the findings housing minister, Yvette Cooper, said: "This report makes clear the government's new target in the housing green paper is the most ambitious housing proposal for decades - is a major step towards stabilising housing affordability.

"It also shows the picture has already improved as a result of the government's boost to previous housing plans."

It is hoped it would provide a further spur to local authorities, who have responsibility for building the new houses.

"This report does provide a further wake-up call to regional assemblies, particularly those in the south, and makes clear they need to raise their ambitions and build the homes the first-time buyers and families need," concluded Ms Cooper.

However, the solution is simple to some.

"Britain’s housing crisis has only one solution – building more homes," said Home Building Federation chairman, Stewart Baseley.

"To build more homes, we need more land. Without land with implementable planning permission, our housing targets will remain unfulfilled dreams."

The report can be seen in full on department for Communities and Local Government website.