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Report predicts housing shortfall of 1 million by end of 2010.

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The gap between English housing supply and demand this year will be equivalent to an area the size of Nottingham, research launched at the 2009 Labour Party conference has warned.

A discussion paper Mind the Gap – Housing Supply in a Cold Climate by David Pretty and Paul Hackett for the Smith Institute and PricewaterhouseCoopers LLP and published by the Town and Country Planning Association, says there will be a supply deficit of around 150,000 homes.
The analysis, based on discussions with over 100 senior representatives from across the housing sector, predicts that housing completions in 2009 are likely to be under 100,000, a 40 per cent drop from its peak, and well short of the government’s target of at least 250,000 new homes a year. The report predicts a total shortfall in England of one million houses by the end of 2010.

It makes a number of recommendations, including more land release and better management of land supply, including the availability of greenfield sites, avoiding any major planning reforms which would create uncertainty and disrupt supply, and easing the impact of regulation through support for rescheduling Section 106 agreements and adjusting the housing tenure mix to improve variability.

David Pretty, who co-authored the Killian-Pretty review into speeding up the planning system, said: "If we ignore this problem and reduce public intervention and investment in new supply of both private and affordable housing, there could be serious social and economic consequences, not least record housing waiting lists and more pain for beleaguered first time buyers.

"Further action, such as more land release, support for new entrants in the market and expansion of the private rented sector, is needed to avoid a return to a cycle of housing boom and bust.

TCPA chief executive Gideon Amos said: "This report highlights that we must continue to plan to provide the homes our society needs – but we must do so in a sustainable way. In short we need quantity and quality.
"Planning can play a key part, but we need a package of solutions as set out in this report to get us back to a more balanced housing market. We will be drawing the findings of this report and our agenda for development in the downturn to the attention of all major political parties."


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