Glen Ford: housing demand is outstripping supply.

Housing will drive change in government policy

Published:  06 May, 2011

UK: The latest housing forecast from Market Insight, draws sobering conclusions about the future of the housing market over the next five years.

The report, produced by Glen Ford, director of HobsonFord Associates, shows that while there has been been a leap in the increase of the UK population from an average of 107 000 a year between 1971-2001 to 400 000 a year in 2010, housing supply has failed to keep up.

The report highlights how the current housing model relies on high levels of home ownership supported by adequate mortgage finance, and a small and highly focused social housing sector.

This model is no longer working for large elements of the population. Many cannot afford to buy or rent.

A 'pressure cooker' effect is being created by growing housing demand and restricted supply. This will drive major changes in government policy over the next 36 months and lead to innovative approaches to planning, investment and newbuild.

Companies, too, will need to investigate alternative models for the UK market. This will require original thinking and new approaches to housing supply, to avoid a repeat of the crises of the 1930s and 1950s.

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