London Daily

Focus on the big picture.
Saturday, May 31, 2025

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
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
White House Press Secretary Criticizes Harvard Funding, Advocates for Vocational Training
France to Implement Nationwide Smoking Ban in Outdoor Spaces Frequented by Children
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
Russia's Fossil Fuel Revenues Approach €900 Billion Since Ukraine Invasion
U.S. Justice Department Reduces American Bar Association's Role in Judicial Nominations
U.S. Department of Energy Unveils 'Doudna' Supercomputer to Advance AI Research
U.S. SEC Dismisses Lawsuit Against Binance Amid Regulatory Shift
Alcohol Industry Faces Increased Scrutiny Amid Health Concerns
Italy Faces Population Decline Amid Youth Emigration
U.S. Goods Imports Plunge Nearly 20% Amid Tariff Disruptions
OpenAI Faces Competition from Cheaper AI Rivals
Foreign Tax Provision in U.S. Budget Bill Alarms Investors
Trump Accuses China of Violating Trade Agreement
Gerry Adams Wins Libel Case Against BBC
Russia Accuses Serbia of Supplying Arms to Ukraine
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
Chinese Woman Dies After Being Forced to Visit Bank Despite Critical Illness
President Trump Grants Full Pardons to Reality TV Stars Todd and Julie Chrisley
Texas Enacts App Store Accountability Act Mandating Age Verification
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Vatican Calls for Sustainable Tourism in 2025 Message
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
Trump Threatens 25% Tariff on iPhones Amid Dispute with Apple CEO
Putin's Helicopter Reportedly Targeted by Ukrainian Drones
Liverpool Car Ramming Incident Leaves Multiple Injured
Australia Faces Immigration Debate Following Labor Party Victory
Iranian Revolutionary Guard Founder Warns Against Trusting Regime in Nuclear Talks
Macron Dismisses Viral Video of Wife's Gesture as Playful Banter
Cleveland Clinic Study Questions Effectiveness of Recent Flu Vaccine
Netanyahu Accuses Starmer of Siding with Hamas
Junior Doctors Threaten Strike Over 4% Pay Offer
Labour MPs Urge Chancellor to Tax Wealthy Over Cutting Welfare
Publication of UK Child Poverty Strategy Delayed Until Autumn
France Detains UK Fishing Vessel Amid Post-Brexit Tensions
Calls Grow to Resume Syrian Asylum Claims in UK
Nigel Farage Pledges to Reinstate Winter Fuel Payments
Boris and Carrie Johnson Welcome Daughter Poppy
×