187,000 affordable homes needed each year - Savills

Around 187,000 additional affordable homes need to be built in England each year, but affordable housebuilding appears to have peaked, according to global real estate services provider Savills.

Savills’ report, Beyond a one size fits all housing policy, finds that more social rented homes are “needed everywhere”, with a “significant step up in delivery” required.

Currently, Savills said, there was an annual affordable housing shortfall of 128,000 homes which was set to grow, with construction starts in the alternative sector (predominantly affordable housing) down by just over a third in the 12 months to September 2024.

The need for 187,000 affordable homes is an increase from 70,000 in 2015, according to Savills’ research. The company said this was based on the government’s recently proposed changes to the standard method for housing need, adding up to 373,000 homes per year across all English local authorities.

The greatest affordable homes gap is in the south of England. Here, an additional 62,600 affordable homes are needed each year.

Savills’ research points to policy measures to address the shortage. These include restoring financial capacity to housing providers through a long-term rent settlement and clear direction for planning policy. The report …