United Kingdom
Unmet housing need
Key points
- In 2007/08, the total output from Housing Corporation funded programmes was around 51,000 dwellings. This figure is much higher than a few years ago, with the average between 1999/00 and 2004/05 being around 30,000 dwellings a year. It is, however, still lower than the equivalent figure in the mid-1990s.
- Within this overall total, it is new dwellings available for low cost home ownership which has increased most sharply, having risen sixfold since 2001/02 from 3,500 in 2001/02 to 21,500 in 2007/08. The amount of new social rented housing has also risen but more slowly, from 16,000 in 2004/05 to 29,500 in 2007/08.
- The 2004 Barker review, Review of housing supply, sponsored by HM Treasury, concluded that around 48,000 new social housing dwellings were required each year to keep up with demographic trends. At 51,000, the amount of new social dwellings in 2007/08 exceeded this level, the first time that this has happened since 1996/97. Because of the substantial shortfall in each of the previous years, the total cumulative shortfall over the last decade compared to the Barker target has been around 130,000 dwellings.
- The 48,000 Barker estimate is only concerned with newly arising need and effectively makes no provision for reducing the backlog of unmet need (her second target of 54,000 only provides for a reduction in the number of homeless households in temporary accommodation). As estimated in Barker, and updated by Shelter, this backlog is considerable, comprising around a million households in various circumstances.
Graph 1: Over time
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Graph 2: Backlog
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Why this indicator was originally chosen
In recent years it has become clear that there is a large and growing shortage of housing available to those on low incomes.
Definitions and data sources
The first graph shows, for each year, the number of new Registered Social Landlord (RSL) dwellings completed/acquired, with the data divided into whether the housing is for low cost home ownership or renting. The figures exclude transfers from local authorities. For comparison purposes, the graph also shows the annual amount of new social housing needed to keep up with demographic change.
The data source for the first graph is Housing Corporation annual reports and the data relates to England. For the years from 1997/98 onwards, the data was obtained via the Department of Communities and Local Government's (DCLG's) evidence to the Select Committee review entitled The supply of rented housing. In addition to the figures shown a relatively small number of new 'affordable' dwellings each year are provided without Housing Corporation funding, primarily as part of S106 planning agreements, or by housing associations re-investing capital receipts from shared ownership sales, but consistent annual figures on these additions are not available. The annual amount of new social housing needed to keep up with demographic change comes from section 5 of a 2004 report entitled Review of housing supply commissioned by the Government from Kate Barker.
Whilst the first graph is largely about newly arising need, the second graph is about backlog. It shows Shelter's latest estimates of the number of existing households who require new 'sub-market housing', with the data broken down into the categories used in the Barker report. 'Sub-market housing' is a phrase used by Barker to describe housing which, for cost reasons, has to be provided by the social sector, either via social rented accommodation or low cost home ownership. The data is from table 4 of Shelter's 2005 report entitled Building for the future: 2005 update.
Overall adequacy of the indicator: medium. The data on new dwellings is factual but there is not necessarily a strict on-to-one relationship between this housing and that required to keep up with demographic change.
External links
- For a wide-ranging discussion of all aspects of housing, including its links with poverty, see the New Policy Institute 2006 report for the Joseph Rowntree Foundation entitled Housing and neighbourhoods monitor.
- See the 2006 evidence submitted to the Select Committee review entitled The supply of rented housing.
- See the 2004 Kate Barker report entitled Review of housing supply commissioned by the Government.
- See Shelter's 2005 report entitled Building for the future: 2005 update.
Relevant 2007 Public Service Agreements
Overall aim: Increase long-term housing supply and affordability
Lead department
Department for Communities and Local Government
Official national targets
Increase the number of net additional homes provided per annum to 240,000 by 2016.
Increase the number of gross affordable homes provided per annum to 70,000 by 2010-11 including 45,000 social homes.
Halve the number of households in temporary accommodation to 50,500 households by 2010.
By March 2011, 80% of local planning authorities to have adopted the necessary Development Plan Documents, in accordance with their agreed Local Development Scheme.
Other indicators of progress
Trends in affordability.
Efficiency rating of new homes.
Previous 2004 targets
Achieve a better balance between housing availability and the demand for housing, including improving affordability. in all English regions while protecting valuable countryside around our towns, cities and in the green belt and the sustainability of towns and cities.
Relevant government policies
- Housing investment programme
- Capital receipts initiative
- Supporting people programme
- Homelessness acts
- Housing strategy
- Homelessness strategy
The numbers
Graph 1
| Year | Thousands | |
|---|---|---|
| For renting | For low cost home ownership | |
| 1990/01 | 21 | 3 |
| 1991/92 | 27 | 4 |
| 1992/93 | 58 | 10 |
| 1993/94 | 48 | 15 |
| 1994/95 | 50 | 18 |
| 1995/96 | 53 | 18 |
| 1996/97 | 41 | 15 |
| 1997/98 | 35 | 11 |
| 1998/99 | 33 | 9 |
| 1999/00 | 29 | 5 |
| 2000/01 | 26 | 5 |
| 2001/02 | 26 | 4 |
| 2002/03 | 23 | 4 |
| 2003/04 | 21 | 8 |
| 2004/05 | 19 | 11 |
| 2005/06 | 21 | 16 |
| 2006/07 | 23 | 18 |
| 2007/08 | 30 | 22 |
The estimated figure for the amount of new social housing needed to keep up with demographic change is 48,000 per year.
Graph 2
Figures are as shown in the graph.