Planning shortfall could hit 180,000 homes

Research by real estate services provider Savills has identified a potential planning shortfall of just under 180,000 homes in England over the course of the next parliament.

It found there was an annual shortfall of 35,562 homes in England, which, accumulated over the course of a five-year parliament, would give a shortfall of just under 180,000 homes.

The report, ‘Beyond the Election: What next for planning?’, found the disparity is widest where housing need is greatest, and that the shortfall is against a planning target that is set significantly below actual need. Even where there are adopted housing targets, these targets are only 80% of what is needed, according to Savills.  

In the south and east of England, including London, the shortfall could be 130,000 over the course of the next parliament. This represents 74% of the total shortfall across England and includes some strong markets such as Sevenoaks, Elmbridge and Epping Forest.

Shortfalls are less pronounced in the north, Midlands and west of England. However they could still amount to an annual planning shortfall of 7,349 in the Midlands and the west of England and up to 2,038 in the north of England.

Susan Emmett, Savills’ research director, said: ‘Housing shortfalls are becoming ingrained in the planning system storing up problems for future generations. The next government needs to address these issues as a matter of priority.’

Savills also found that, three years after the introduction of the National Planning Policy Framework, 76% of local planning authorities outside London and National Parks do not have a post-NPPF plan in place and are relying on outdated assessments of housing need.