New government data reveals a worrying decline in housing supply across England, with annual delivery falling by 6% to 221,071 net additional dwellings in the year to March 2024—the lowest level in eight years. The figures have prompted industry experts to urge bold policy changes to address the mounting challenges in the housing sector.
Housing output drops across most regions
The decline is widespread, with all but one region in England seeing a reduction in net additions. The sharpest falls were recorded in the North East, South West, and East Midlands. Notably, London’s housing output dropped 9% to 32,162 homes, marking a nine-year low.
The latest data also highlights a significant shortfall in housing supply relative to Labour’s proposed target of 370,000 homes annually. Both London and the South East are forecast to face the largest deficits in meeting this ambitious goal.
Adding to the concern, early data for 2024 indicates that housing delivery—using Energy Performance Certificates (EPCs) as a proxy for completions—is down 7% from 2023 and 14% from 2022.
Experts call for policy innovation and developer support
Reacting to the findings, Anna Ward, Associate in Residential Development Research at Knight Frank, pointed to the economic and structural pressures impacting delivery:
“These declines reflect the mounting challenges to boosting delivery, including construction capacity constraints and economic pressures stemming from market volatility. Addressing this shortfall requires empowering entrepreneurial developers in urban centres as well as traditional greenfield builders.”
Charlie Hart, Head of Development Land at Knight Frank, emphasised the need for bold policy action to revitalise housing delivery in urban areas:
“The decline in London and the South East highlights the pressing need for bold policy reform. While the UK housing market presents significant opportunities, particularly in our cities, we need to create conditions that attract global investment and support entrepreneurial developers.”
Hart also stressed the importance of supporting small and medium-sized enterprise (SME) developers, who are often key drivers of urban regeneration:
“SME developers have demonstrated their willingness to drive innovative solutions when operating within a supportive framework. Creating a more competitive investment environment would help unlock the potential of our cities and boost housing delivery to meet growing demand.”
Can reforms boost housing delivery?
With housing supply stagnating, experts argue that transformative policy changes are essential to reversing the trend. Suggested measures include incentivising development, attracting global capital, and empowering smaller developers to innovate and contribute to urban regeneration.
However, achieving these goals will require a coordinated approach across government and industry, particularly as economic volatility and capacity constraints continue to challenge the sector.
