The South East region of the UK and London are facing major housing shortages, as the next four years are faced with new cut backs in the housing budget.  The National Housing Federation of the UK said funding for just 243 new affordable homes will be available, aside from the homes planned for construction by the previous government.

Comparatively speaking, 30,000 new homes were constructed in London and other South East areas last year.

The stinging news came to the area that more than 18 billion pounds will be cut from the housing budget over the next nine years.  This leaves just one billion a year for the government to build affordable homes.

While this seems like a significant figure to most, virtually all the money will be allocated to homes which are already planned to be built. This leaves very little for anything to be built.

The news of the lack of affordable housing has pulsated through the rental market.  Young professionals rely on the rental market for housing.

David Orr, the housing federation’s chief executive, commented on the ultimate impact to the south east region due to a housing shortage, saying: "The impact of cuts of this level would lead to the building of affordable housing effectively grinding to a halt over the course of this parliament. Such a slump in affordable house building in London and the south east would not only be bad news for millions of people on waiting lists in the region, but it would be a hammer blow to the regional economy – which should be the powerhouse of any expected economic recovery."