London Daily

Focus on the big picture.
Wednesday, Nov 04, 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
Northern Ireland Executive Agrees on Multi-Year Public Sector Pay Restructuring Framework at Stormont
Department for Transport Confirms Acceleration of Electric Vehicle Charging Infrastructure Rollout Along Strategic Motorways
Welsh Government Announces Emergency Funding Package to Support Agricultural Sector Facing Severe Weather Impacts
High Court Rules in Favor of Environmental Coalition Over Government Carbon Reduction Plan Deficiencies
Office for National Statistics Reports Stable Retail Sales Growth Supported by Strong Digital Commerce Volumes
Scottish First Minister John Swinney Secures Cross-Party Support for Renewable Energy Export Expansion
National Health Service Digital Reports Major Breakthrough in Reducing Elective Waiting Lists Across England
Chancellor Rachel Reeves Outlines Infrastructure Spending Reforms to Boost Regional Economic Growth Across Northern England
Bank of England Holds Baseline Interest Rate at Five Percent Amid Persistent Core Inflation Pressures
House of Lords Advances Representation of the People Bill to Modernize Electoral Law Ahead of General Election
Financial Markets and Private Equity Assess Tax and Corporate Realignment Following Recent Chancellor Budget Adjustments
Justice Committee Warns Legal Aid Is a Service in Managed Decline Due to Inadequate Government Funding Responses
Royal Navy Intercepts Russian Intelligence Vessel and Warships Across Intensive North Sea Operations
Business and Trade Committee Slams Government Policy on China as Fragmented and Lacking Strategic Direction
Home Secretary Shabana Mahmood Softens Immigration Plans Following Intensive Cabinet Backlash Over Settlement Timelines
Automotive Industry Data Reveals Continued Acceleration in Battery Electric Vehicle Registrations Across British Dealerships
High Court of England and Wales Rules on Landmark Legal Challenge Regarding Local Government Housing Mandates
Department for Energy Security and Net Zero Approves Expanded Offshore Wind Infrastructure Along Scottish Coastline
Competition and Markets Authority Launches Broad Investigation Into Artificial Intelligence Infrastructure and Cloud Partnerships
United Kingdom and European Union Launch High-Level Preparations for Bilateral Defense and Security Summit in Brussels
National Health Service England Unveils Emergency Workforce Reforms to Alleviate Winter Accident and Emergency Pressures
Chancellor Rachel Reeves Finalizes Autumn Budget Adjustments to Meet Fiscal Rules and Fund Public Services
Bank of England Prepares for Interest Rate Decision Amid Rising Bond Yields and Inflationary Pressures
House of Lords Begins Detailed Legislative Scrutiny of Representation of the People Bill and Cyber Security Laws
Metropolitan Police Detain More Than Three Hundred Individuals Following Large-Scale Demonstration Outside London Embassy
Home Office Prepares Stricter Residency Rules Requiring Vulnerable Migrants to Wait Decade for Settlement Rights
Professional Mental Health Bodies Demand Statutory Regulation for Counsellors and Psychotherapists
National Grid Confirms Construction of Britain's Largest Electrical Substation to Power Teesside Data Centre
Prime Minister Keir Starmer Travels to Samoa for Commonwealth Summit Amid Debates on Economic Cooperation and Reparations
Home Office Implements Enhanced Digital Border Controls and Visa Processing Systems at Major Airports
Office for National Statistics Reports Stable Employment Participation Rates Across Regional Labor Markets
Department for Business and Trade Announces Strategic Partnership to Secure Critical Mineral Supply Chains
Scottish Government Unveils Regional Economic Development Strategy to Boost Advanced Manufacturing in Glasgow and Dundee
Treasury Officials Review Taxation Frameworks and Capital Gains Rules Ahead of Autumn Budget Disclosures
National Health Service Leaders Warn of Winter Capacity Pressures Across Acute Care Facilities
Bank of England Prepares for Key Interest Rate Decision Amid Sticky Inflation and Fiscal Policy Pressures
Home Office Expands Border Security Operations and Intelligence Sharing With European Partners
Office for National Statistics Reports Modest Retail Sales Growth Ahead of Crucial Christmas Trading Season
Welsh Government Unveils Strategic Plan to Boost Regional Technology Innovation and Digital Skills Training
Department for Environment Food and Rural Affairs Implements New Agricultural Subsidies Framework for English Farmers
Scottish First Minister John Swinney Announces Major Regional Infrastructure and Green Energy Investment Strategy
National Health Service Leaders Warn of Severe Winter Pressures and Mounting Accident and Emergency Backlogs
Bank of England Monetary Policy Committee Signals Cautious Interest Rate Path Amid Persistent Services Inflation
Chancellor of the Exchequer Rachel Reeves Finalizes Autumn Budget Framework Aiming to Close Public Sector Fiscal Gap
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
×