The UK construction industry stands at a crossroads, facing mounting challenges that threaten to hinder progress and exacerbate the housing crisis. With over a million homes yet to be built despite having planning permission, and a retrofitting demand that far outpaces current efforts, the industry’s capacity to meet both current and future needs is under intense scrutiny. This blog delves into the critical numbers that paint a stark picture of the sector’s present state, shedding light on the gaps between targets and reality, and the urgent need for accelerated action to build and retrofit homes across the country.
New build
1+ million
homes with granted planning permission since 2015 have yet to be built, representing approximately one-third of the total approved planning permissions during this period. (Planning Portal)
500,000 instead of 300,000
homes per year are necessary to meet the housing demand in the UK, a figure that far exceeds the government's target of 300,000 homes annually, which has consistently been missed for decades. (Financial Times)
63 seconds
In order to meet the target of 500,000 homes per year, we would theoretically need to build or finish a house every 63 seconds. (Vector Homes Analysis)
85 seconds
To achieve the Labour Party's goal of building 370,000 homes annually, we would theoretically need to build or finish a house every 85 seconds. (Vector Homes Analysis)
158 seconds
Currently, we theoretically finish a house every 158 seconds, assuming 200,000 homes are completed this year, which most experts doubt. This means we would need to speed up housing completions by 60% to meet real demand and by 46% to reach Labour's targets. (Vector Homes Analysis)
7%
of British homes have been built since 2001, which is the oldest housing stock among developed countries. By comparison, 18.5% of homes in Spain and 16% in Portugal were built after 2001. (Home Builders Federation)
38%
of UK homes were built before 1946. In contrast, only 21% of homes in Italy and 11% in Spain date back to before 1946. (Resolution Foundation)
Retrofitting
14%
of UK households live in homes that do not meet the Decent Homes Standard, equating to nearly 4 million people living in substandard conditions. Furthermore, 9% reside in homes with HHSRS Category 1 hazards, and 4% live in homes with damp. (English Housing Survey)
29 million and 15 million
29 million homes in the UK need retrofitting by 2050, with 15 million of those requiring completion by 2030. (UKBC, Green Alliance)
10.5 Seconds until 2030
To meet the 2030 target of retrofitting 15 million homes, we would theoretically need to complete the retrofit of a house every 10.5 seconds. (Vector Homes Analysis)
45 Seconds 2030 - 2050
To meet the retrofit targets for 2050 (14 million homes), we would theoretically need to finish retrofitting one house every 45 seconds from 2030 to 2050. (Vector Homes Analysis)
7.7 million and 5.1 million
7.7 million homes with solid walls and 5.1 million homes with cavity walls lack insulation. Since 2013, government policy changes have led to a significant reduction in insulation installations under government schemes. (House of Commons)
Source: House of Commons
Housing Price and Income
-13.78% and +21.80%
-13.78% is the decrease in the average UK salary since 1990 after adjusting for inflation, while +21.80% represents the increase in inflation-adjusted housing prices over the same period. This trend underscores the growing unaffordability of housing, particularly for younger generations who are increasingly unable to purchase homes. (Office for National Statistics-1, Office for National Statistics-2)
Source: Vector Homes Analysis
11.3 million
UK residents spend more than 40% of their household income on housing, a higher percentage than any other European country. (Home Builders Federation)
1.2+ million
As of 31 March 2022, there were 1.21 million households on local authority waiting lists, marking a 2% rise from the 1.19 million recorded in 2020/21. These figures represent the most recent data available. (Department for Levelling Up, Housing & Communities)
Homelessness
309,000
people are homeless in the UK in 2023, a figure that is particularly concerning given its almost linear growth. (GOV.UK Homelessness Statistics)
Source: Vector Homes Analysis
The numbers tell a compelling story of an industry under strain, with far-reaching implications for the UK’s housing landscape. From the pressing need to speed up new builds and retrofits to the worrying trends in housing affordability and homelessness, it’s clear that the UK construction sector must evolve rapidly to meet the demands of the future. As policymakers, industry leaders, and communities grapple with these challenges, a collective effort is required to close the gaps and ensure that every citizen has access to safe, affordable, and sustainable housing. The time for decisive action is now.