Undersupply Leading to Rise in Homelessness In UK

Undersupply leading to rise in homelessness in UK

28 Jun 2018

There has been a rise in homelessness in the UK since 2010 due to a steep government investment drop. To tackle the homelessness situation, the government released a White paper focusing on building houses fast, in the right places, and helping people find new affordable homes.

These steps require a change in construction and building industry policies. The planning departments are finding ways to approve developments to prevent delays.  

The shadow housing secretary, John Healey, said there had been a rise in homelessness, since 2010, as a direct result of conservative decisions that made steep cuts in housing benefits and lowered funds for such services. Also, they refused to help private renters.

Historical statistics show that building construction was higher in the 1970s, but the demolition process and poor building conversion into homes led to scarcity. As a result, the Housing Supply increased four times in the 20th century.

The study by the Housing Supply for Local authorities finds an estimated 240,000 to 300,000 new homes are needed per year in the UK, and the supply of homes is not as per demand. The projection by the DCLG, which is based on ONS population projections, shows that households in the UK will grow from 22.7 million in 2014 to 28 million by 2039. 

Government decisions and outcomes in the form of homelessness have a severe impact on elderly lone pensioners who are seeking options in temporary accommodations or sleeping on the streets. 

With approx 80,000 households living in such temporary accommodation – it contains 77 per cent, pregnant women and children.

Undersupply In UK Properties Is The Result Of The Following –

Low completion - In the current decade, housing completions have fallen significantly in the range of 125,000 in a year, and there have not been many private housing sector developments since 1970. Huge wealth is locked in the UK real estate, but shortages and risks where, if the government pays for homes, the sector will completely become dependent on government policies. 

Backlog Of Requirements And Rising Overcrowding In Some Areas - Demand is volatile across cities and regions, where some regions are highly populated. The demand is highest in the South East, South West, Humber, Yorkshire and London. 

Rise in younger adults living with their parents. However, the issue of housing and homelessness is not limited to one generation, it affects multiple generations, and the government should address the challenges on the supply side.

Environmental Risks - There are environmental risks associated with new construction in some UK land areas( like the risks of climate change, energy efficiency, environmentally friendly building design, low contamination and pollution approach) that need to adopt environment-friendly design methods.  

The government should make affordable houses available to retirees, address social housing, and use the housing wealth to ensure people in need do not face homelessness. In addition, the government can change mortgage rules, promote private renting, use revolving funds and allocate funds for development and infrastructure, to prevent a shortage.

Visit Hamilton International Estates (www.hamiltoninternationalestates.com) to find some lucrative affordable homes in the UK. 

Categorised in:

Get In Touch

Hamilton International Property Contact our office

Contact Our Team


+44(0)1628 397840

Hamilton International Property Contact our office

Visit Our Office


Chiltern House Business Center
64 High Street, Burnham
Bucks - SL1 7JT
United Kingdom


Enquire Now