The housing market could be facing problems in the next few years according to the latest data released by the Home Builders Federation.  In looking at future needs in housing it is estimated that the UK needs approximately 240,000 homes built each year to meet demand for housing.  However, it appears there will be less than half that number built if the current trend continues.

Planning permission approvals have declined to the second lowest level since the beginning of the recession.  In comparison to the same three months to July last year, there was a 24 per cent decline.  Currently there is much talk of whether indeed the need for housing is truly this great of a need and there are many counter groups disputing the need. 

Mark Clare, chief executive of Barratt, one of the UK’s largest house builders, remarked saying “It’s an inescapable fact that the housing needs of the nation are not being met so it’s vital that we end the uncertainty and put in place a new planning system that balances legitimate local views, the need for more housing and economic growth.”

Housing is running short in all areas, public housing, private housing, and buy to let.  There is no doubt that changes are occurring in the housing market.  Less homeowners are upgrading in properties, instead choosing to remortgage and do home improvements.  As there are fewer buyers in the market, it is expected that households will be staying in their homes longer than in years past before upgrading.  Also, many empty nesters are choosing to downgrade and retain ownership in their previous home and using it as a rental property to join the current boom in demand for rental properties.  Fewer buyers, more rental needs, fewer homes on the market, more households in need of housing, indeed the housing market is changing and evolving and the planners need to be ready to meet demands that develop over the years ahead.