London Daily

Focus on the big picture.
Sunday, Nov 01, 2026

Which areas in England are worst affected by the housing crisis? And what's pushing up prices?

Which areas in England are worst affected by the housing crisis? And what's pushing up prices?

House building has not kept up with population growth in almost half of the local authorities in England, Sky News analysis has found.

In the decade to 2021, the population grew faster or at the same pace as the number of homes in 150 out of 309 local authorities, according to our analysis of data from the recently released 2021 Census and the Department for Levelling Up, Housing and Communities.

Experts in the housing sector say we are not building enough even where the number of new properties has kept up with population growth because there were already too few homes.

The number of dwellings in England grew 8.4% over the last decade, while the population grew 6.6%. But this is an average and averages hide the disparities between places.

When there are not enough empty properties, prices are higher and renting conditions are often worse.

Valentine Quinio, senior analyst at the Centre for Cities, says that we need vacant homes to allow the housing market to function properly.

"With very few empty homes, landlords have the negotiation power to pull up rents because they know that renters have no other option," she says.

In England, only 1% of residential properties are vacant, which is far lower than most European countries.

In Germany, the latest OECD data shows that 8.2% of total dwellings are vacant, while in Japan it's 13.6%.

The proportion of long-term vacant dwellings in England has not changed much since 2011 and is below 3% in every local authority.


Quinio says the lack of empty properties means more people have to live in house shares.

Our analysis also shows that households are growing in size in the same places where not enough homes were built over the past decade.

"The housing shortage was very much an issue in many cities already, and these are the same cities that are struggling now," says Quinio.

A lack of supply also means the average quality of the housing stock is lower, as new builds tend to be better insulated.

On average, more than eight in 10 of new residential properties created in England in 2021 were new build dwellings.

But new builds made up less than half of new homes in eight of the 309 areas we analysed, including Portsmouth, Richmondshire and Eastbourne.

What does this mean for house prices?


Prices have increased everywhere over a decade, but the rise has been over 50% in two-thirds of England's local authorities.

The cost of buying a property has doubled in some London boroughs like Waltham Forest, Barking and Dagenham, Hackney, and Lewisham.

Our analysis shows that prices have increased the most in areas where the population has grown faster than the number of dwellings and in areas where the proportion of empty homes is lower.

Tom Bill, head of UK residential research at real estate consultancy Knight Frank, says there's often localised shortfalls in housing because "it's not a perfect system" and properties don't always get built where they are needed most.

"House builders face red tape, they face uncertainty over government support initiatives like Help to Buy," he says.

"Often it's not as straightforward as going in and plugging a hole in supply."

A dysfunctional housing market has a knock-on effect for population growth and economic development in cities.

Quinio says that, aside from London, major cities have average population growth - a sign that they are "punching below their weight" when it comes to house building.

"They should be above average because they should be driving economic growth," she says. "[A shortage of housing] is essentially stunting household formation."

A spokesperson for the Department for Levelling Up, Housing and Communities said: "Comparing population growth with new houses built does not take into account those who live together.

"A more meaningful analysis is to compare the number of households - between 2011-21 there were 1.9 million additional homes in England, while the number of households increased by 1.37 million.

"We remain committed to reaching our target of delivering 300,000 homes a year and just before the pandemic struck housebuilding reached the highest level in 30 years - with over 242,000 new homes built.

"We're investing £11.5bn to provide up to 180,000 affordable homes across the country, alongside a £1.8bn investment to support the regeneration of brownfield land, delivering more local housing, transport and better infrastructure for local communities."

Methodology


Local authorities are based on 2021 boundaries. For those authorities whose boundaries changed between 2011 and 2021, we have tracked and matched the previous boundaries. Areas affected are: Bournemouth, Christchurch and Poole, Dorset, Buckinghamshire, West Suffolk, East Suffolk, Somerset and Taunton, West Northamptonshire and North Northamptonshire.

An area is considered to have a non-healthy housing market when the difference between the growth of the population and the growth of the number of dwellings in stock is greater than -2 percentage points. Years refer to financial years.

Vacancy rates refer to long-term vacant properties only, which includes dwellings that have been empty for six months or longer. This does not include dwellings registered as second homes.

Newsletter

Related Articles

0:00
0:00
Close
Department for Science, Innovation and Technology Prepares Enhanced Artificial Intelligence Safety and Cyber Defense Frameworks
United Kingdom Government Expands International Sanctions Framework Against Russian Shadow Fleet and Financial Enablers
Institute of Directors Reports Sharp Post-Budget Drop in Business Confidence Despite Long-Term Investment Intention Shifts
Chancellor John Healey Defends Sweeping Fiscal Adjustments and Household Support Packages Following Autumn Budget
Parliamentary Petitions Committee Schedules Major Legislative Debates on Special Educational Needs and Non-Stun Meat Labelling
Regional Devolution and Good Growth Fund Frameworks Reshape Local Government Funding Across English Regions
Loughborough University Economic Analysts Highlight Substantial Uncertainty Surrounding Public Sector Efficiency Savings
British Legal Sector Drives Sixty Billion Pounds in Annual Economic Output While Employing Over Half a Million Professionals
Law Society Welcomes New Better Regulation Executive While Pressing for Long-Term Legal Aid Funding Reform
Metropolitan Police and Security Services Heighten Operations Across London Ahead of Large-Scale Public Demonstrations
Bank of England Economists Scrutinize Corporate Tax Adjustments and Public Sector Borrowing Pressures
Chancellor John Healey Defends Autumn Budget Tax and Spending Allocations Following Intense Parliamentary Scrutiny
Department for Environment, Food and Rural Affairs Implements Strict Water Quality Monitoring Rules Following Severe Rainfall and Flooding
Welsh Government Unveils Comprehensive Regional Housing Strategy to Address Rural Affordability and Homelessness Pressures in Cardiff
Office for National Statistics Reports Slowing Consumer Price Inflation and Steady Retail Performance Across United Kingdom Markets
Northern Ireland First Minister Michelle O'Neill and Deputy First Minister Emma Little-Pengelly Advance Cross-Border Infrastructure Agreement in Belfast
Competition and Markets Authority Launches Formal Investigation Into Artificial Intelligence Partnerships Involving Major Technology Corporations
Scottish First Minister John Swinney Secures Cross-Party Support for Devolved Budget Framework and Renewable Energy Expansion
High Court Rules in Favor of Environmental Campaigners Over Department for Energy Security and Net Zero Licensing Procedures
National Health Service England Announces Major Digital Modernization and Artificial Intelligence Diagnostic Rollout Across Regional Trusts
Bank of England Monetary Policy Committee Signals Cautious Approach to Interest Rate Cuts Amid Persistent Wage Growth and Inflation Pressures
British Prime Minister Keir Starmer and Chancellor Rachel Reeves Outline Strategic Infrastructure Plans to Boost Regional Growth and Private Investment
Water pollution remains high despite £5bn investment
Regional Economic Divergence and Industrial Transformation
Technological Sovereignty and Regulatory Scrutiny
Fiscal Consolidation and Public Service Pressures
Automotive Industry Leadership Warns of Imminent Supply Chain Disruptions Following Recent European Trade Negotiations
High Court Delivers Landmark Ruling Affirming Strict Legal Protections for Corporate Data Privacy Against State Surveillance
Welsh First Minister Eluned Morgan Secures Additional Funding for Regional Transport Infrastructure and Rail Modernization
Scottish First Minister John Swinney Announces Major Green Energy Infrastructure Investment Package for Aberdeen
Department for Work and Pensions Proposes Sweeping Welfare Reforms to Incentivize Long-Term Unemployed Back into Work
Competition and Markets Authority Launches Formal Investigation into Artificial Intelligence Partnerships Involving Major Tech Giants
United Kingdom Foreign Secretary David Lammy Concludes High-Level Strategic Talks in Washington on Middle East Security
National Health Service England Unveils Emergency Winter Resilience Plan to Combat Projected Surge in Emergency Admissions
Bank of England Governor Andrew Bailey Signals Cautious Approach to Interest Rate Cuts Amid Persistent Inflation
British Chancellor Rachel Reeves Finalizes Corporate Tax Overhaul Ahead of Autumn Budget to Fund Public Services
Automotive Manufacturers Urge Government Action as High Energy Costs and Global Supply Chain Disruptions Threaten Production
Metropolitan Police Issue Formal Apology Following Inadvertent Release of Confidential Information During High-Profile Investigation
Scottish Finance Secretary Shona Robison Unveils Devolved Budget Highlighting Housing and Public Service Adjustments
Energy Regulator Office of Gas and Electricity Markets Prepares to Remove Household Gas Standing Charges Following Treasury Mandate
Treasury Confirms Reversal of Planned Cash Individual Savings Account Allowance Reduction Protecting Twenty Thousand Pound Limit
Office for Budget Responsibility Revisions Predict Moderate United Kingdom Economic Growth with Elevated Inflation Pressures
Chancellor John Healey Delivers First Autumn Budget in Parliament Highlighting Temporary Bank Surcharge and Cost-of-Living Support
Met Office Issues Extended Forecast Highlighting Stable High Pressure Weather Patterns Across the United Kingdom
Scottish Finance Secretary Shona Robison Outlines Changes to Tax Thresholds and Residential Property Levies in Edinburgh
Financial Markets and Government Bond Yields Remain Stable Following Muted Reaction to Autumn Budget Measures
Defence Committee Chair Tan Dhesi Criticizes Budget for Delaying Critical Defence Spending Decisions to Next Year
International Monetary Fund Forecasts United Kingdom Economic Growth at One Point Three Percent for Year
Office for Budget Responsibility Assesses Fiscal Headroom Reduced to Fifteen Billion Pounds Following Global Energy Shocks
Chancellor John Healey Delivers First Autumn Budget Introducing Household Energy Support and Bank Tax Hikes
×