Housing pressure cooker to drive change in Government policy

Latest News Tue, Mar 22, 2016 4:57 PM

Housing pressure cooker to drive change in Government policy

The latest housing forecast from Market Insight, produced by Glen Ford, Director of HobsonFord Associates, draws some sobering conclusions about the future of the housing market over the next 5 years. There has been a major leap in the rate of increase in the UK population (from an average increase of 107,000 a year from 1971-2001, to 400,000 a year in 2010), but while demand has increased supply has failed to keep up.  Given the current economic situation, the lack of mortgage lending and continuing high prices, the threat of a serious housing shortage is very real.

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 can’t 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 new build.

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.

For more information and advice on meeting this challenge go to www.hobsonford.co.uk or contact Glen Ford on info@hobsonford.co.uk

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