Housing shortage crisis looming in 2015

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new homeLewis Stickley/PA Archive

Housebuilder, Barratt Developments, has warned that Britain is sleepwalking into a housing crisis, because we are failing to build enough new homes to keep pace with the booming population.

So why can't you sell your home?

Shortage

When announcing its results, the builder said that there is a massive unmet demand for new properties. Chief executive Mark Clare said: "There is a large amount of pent-up demand. We are building, as an industry, 120,000 homes a year, but the requirement is for well over 200,000."

As builders cannot keep pace with demand, he claims there is a gap growing between the demand for new property and the dwindling supply. Builders are struggling with the shortage of credit and a downturn in their fortunes, so have stopped building so many properties - it means the shortfall is likely to reach a million properties by 2015.

Why can't you sell?

This isn't going to ring true for the thousands of people who are trying and failing to sell their home. If there is such a clamour for property, then why hasn't a single solitary person looked round in the last few months?

The problem isn't a lack of people who want to buy your home. The problem is that they aren't in a position to buy it: because they can't get the mortgage they need, or they don't have the job security they need, or they can't sell their own home and they are locked in a vicious circle.

It doesn't stop them needing a property, just as it doesn't stop you needing to move to a bigger property. A huge number of people are trapped somewhere inappropriate - whether it's expensive rented accommodation or a house that's too small for them.

Clarke's argument is that we need to build a whole chunk of new property, bring prices down a bit, make everything more affordable, reduce the reliance on mortgages, and free us up to move somewhere we actually live.

But what do you think? Let us know in the comments,.

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