Five Million New Homes Needed By 2029
According to The Department of Communities and Local Government (DCLG), England's total number of households is expected to rise from 21.1 million in 2004 to 26.5 million by 2029.
The largest contributor to this massive growth will be the increase in single-person households, accounting for 155,000 of the projected 223,000 new households a year (the previous estimate was 209,000 new households a year).
One third of the occupants of these single-person households will be over the age of 65, demonstrating the effects of increased life expectancy on an ageing population.
In addition, continued overseas interest could play a substantial part in the increase of household numbers. One third of household growth is projected to be accounted for by international migrants.
Growth In The North
Comparison of the new 2004-based household projections with the 2003 ones shows higher annual average household growth in the North East, the North West and Yorkshire and the Humber.
The new projections also show a moderate increase in the Midlands and an increase in London, but the rise in the Capital's households will be offset by lower growth in the East and South East.
Commenting on the figures, Housing Minister Yvette Cooper, said: "These figures show the need for more homes is not restricted to London or the South East. Increases in jobs and economic prosperity across the Midlands and the North are increasing demand for housing nationwide.
"If we don't build more homes we will see house prices rising even higher, with young people struggling to afford a home of their own."
Build More Houses
David Stubbs, Senior Economist at RICS, echoed this sentiment: "Action is needed now to ensure this new demand will be met by increased supply in the number of homes built in this country.
"Renovation of existing buildings would also help to meet this need and take the pressure off green field sites.
"If this challenge is not met house prices will continue to be pushed upwards by tight market conditions, making accessing the housing market even more difficult for first-time buyers than it already is."
However, Stewart Baseley, Executive Chairman of the Homebuilders Federation, believes the figures highlight the Government's own failure to keep pace with the rising demand for more housing. He comments:
"Government targets aim to raise annual house-building in England to 200,000 by 2016, so today’s figures show that the current rate of 160,000 new home completions leaves a shortfall of over 60,000 homes per year.
"These projections show the critical need for local authorities to bring land forward for development and increase the flow of planning permissions so that house-builders can build the homes we so desperately need.
"We need to provide choice and enable all parts of the market, particularly first-time buyers, to meet their housing aspirations."