The UK’s housing shortfall will rise by a further 318,632 by 2020 at the current rate of growth, Aldermore has warned.
The lender says the UK’s house building output against the 250,000 figure recommended in the Barker Review in 2004 shows a shortfall of 915,930 houses as of the beginning of 2015.
To meet the annual recommended target of 250,000 homes a year, the UK must build 685 homes a day, Aldermore says.
Over the past twelve years, UK house builders have fallen short of this target by 210 homes per day at 475, below 70% of the target.
Charles Harsenape, group managing director of Aldermore, said: “Those in the house building industry do a tremendous job, especially after the construction industry was crushed during the recession when many good businesses failed due to the economic environment and lack of access to funding which resulted in countless projects being cancelled or mothballed.
“The UK has made steady progress in improving the levels of house building, but it needs to go much further if we are to truly live up to the reputation of a nation of homeowners.
“The housing supply crisis has significant knock-on effects, whether for older home owners who can’t find appropriate properties to downsize to, or younger generations who find themselves unable to effectively save for a deposit due to high rents.
“Whilst recent figures show an increase in annual house building, this needs to be sustained, and I look forward to the seeing what solutions are proposed in the Autumn Statement and Housing White Paper to make this a reality.
“Housing policy should no longer be thought of as one group versus another, as this leads to a fragmented market which makes reform more difficult.”