The UK is facing a housing shortfall and the southeast of England is under great pressure to build some 200,000 extra houses in the coming ten years.  This minimum is what is needed in order to not face a crisis.  The Greater London Authority has done its own market analysis and discovered the actual need is between 49,000 and 62,000, which is much more than Mayor Johnson is proposing at 42,000.  A potential shortfall could be on the horizon of some 20,000 homes.

A report conducted by Nathaniel Lichfield & Partners indicates cities which are commuter towns would have to shoulder this burden under the latest building rules.  Councils will be under great pressure to create ways to build in adjoining areas if there are no local options to put up housing.  This issue transcends many issues facing lenders currently.  This problem goes beyond lending rules and debt ratios and is affecting actual councils responsible for developing housing in their own areas.

London is facing great shortages, but local authorities outside the Capital City are being advised to be conscious of the needs facing London.  The Southeast of London is just one such area which is under advisement.  Councils outside the city are not obligated to assist in the housing needs of the Capital, but if they resist they must show ample reason why they cannot live up to helping with the development of houses.

Matthew Spry, a director at NLP, commented on the councils outside the city of London, saying: “Only councils covered with greenbelt will be able to resist, but this in turn increases the pressure on those councils further out who are not covered by greenbelt.”