How grey belt sites will help tackle the UK housing crisis
The UK has not been meeting its house building targets for some time. This is not new news, but it is worth reiterating the scale of shortfall. Over the past five years, we have consistently delivered 20% fewer homes than were targeted: a total miss of nearly 300,000 homes (or put another way, an entire year’s target).
Couple this with projected population growth and we can see why house building has made its way up the political agenda. The population is expected to swell by 3.8 million people over the coming 10 years, and naturally, these people will need somewhere to live.In this blog series, VirginLand have partnered with CACI to uncover key questions around the future of house building targets and how they can be addressed via grey belt sites, including their locations and desirability, whether they create suitable opportunities for inhabitants and how they vary by region.
Where should new house building targets be focused?
Population growth will concentrate around major towns and cities, especially given that 14 of the largest 15 towns and cities have projected growth rates that outstrip the UK average. However, cities are not always where the market has delivered new homes. In fact, eight of those top 15 towns and cities have housing delivery rates that lag behind the national average. Therefore, new housing targets should be geographically directed to the places that people want to live.
Who should be the focus of house building targets?
Housing growth should be targeted at the people that need it most. Left to its own devices, the market has delivered new housing that concentrates around a few demographic groups. Using CACI’s Acorn segmentation to profile new homes delivered in the last five years, we can see clear trends in the data; Tenant Living (young, urban renters) comprise 18% of new homes but just 12% of the population, Semi-Rural Maturity and Mature Success (two affluent, older groups who are likely to be downsizing) collectively account for 20% of new homes but just 13% of the population. Lower affluent, urban families such as Limited Budgets, Hard-Up Households and Cash Strapped Families, however, have received disproportionately little housing development.
This is not to lay blame on housebuilders; the commercial challenges of development in urban environments are clearly contributing factors, however, the impact is one of acute supply challenges in specific demographic groups who are coincidentally the groups most likely to be living in over-occupied housing. To maximise the impact of housebuilding initiatives, the route forward requires a more collaborative approach, which the newly formed MADE Partnership may well deliver.
How will the grey belt make a difference for house building targets?
Central to the Labour government’s housing policy is the rezoning of poor-quality green belt sites into the “grey belt”, effectively opening swathes of previously unavailable land for development. But how influential could this policy change be? CACI and Virgin Land have partnered to uncover the potential impact that opening up the grey belt can have on housing market dynamics.
How VirginLand can help?
Stay tuned for the next blog in this series, where we’ll dive deeper into grey belts, their locations and their impact on housing. In the meantime, contact VirginLand to learn insights about where and how you buy land.