Market Research
25 Nov 2021

Housing supply in England drops by 11% in 2020/21

In the 12 months to the end of March 2021, 222,250 homes were completed in England. This comprises of:

 

  • 194,060 new build homes
  • 23,790 changes of use between non-domestic and residential, 10,603 of which were through permitted development rights
  • 3,870 conversions between houses and flats
  • 530 other gains (e.g. caravans, house boats)
  • The gains were offset by 5,763 demolitions

 

The Department for Levelling Up, Housing and Communities has published the latest housing supply statistics showing that annual net housing supply in England fell to 216,490 in 2020-2021.

With the early impact of the coronavirus pandemic affecting completions, the figures represent the first annual fall in net supply since 2012/13.

The figure is an 11% decrease on last year. However, as this data is taken from the period between 1st April 2020 and 31st March 2021, this will undoubtedly have been influenced by the early impact of the pandemic on site and sales activity.

Net additional dwellings reached a low of 124,720 in 2012-13. Since then, net additions have increased year-on-year to a peak of 242,700 in 2019-20.

The 216,490 additional dwellings last year represents an increase of 1% in the size of the previous dwelling stock of 24.7 million dwellings in England.

 

New build completions

Although new build completion figures are down by 25,000 (11%) on last year, the number of new build completions remains relatively high as compared to figures over the last 15 years.

New build completions are the largest component of net additional dwellings, accounting for 90 per cent of the net change.

Net additions from change of use decreased in 2020-21, down by 2,930 (-11%) on the previous year and down by almost 40% from 2016-17 when change of use accounted for 37,000 new homes (more 1 in 6 new homes).

 

Demolitions

Demolitions hit an all-time low of 5,763 in 2020-21, the lowest figure down by approximately 36% from the previous year’s figure of 9,020. Over the last five years, demolitions have averaged just under 8,000 a year. In the years prior to the financial crash, the average annual figure was closer to 20,000.

 

Regional trends

Overall housing supply in London was down by 9% on last year. Areas with some of the highest rates of net additions per 1,000 dwellings in 2020-21 were:

  • Salford
  • Harborough
  • South Derbyshire
  • Ashford

Changes in the level of net additional dwellings between 2019-20 and 2020-21 also varied across England, increasing in 119 out of 314 authorities. The geographic spread of increases and decreases is mixed. In London, 14 out of 33 London Boroughs showing some level of increase and 19 having decreases.

Read the full report and analysis here – Housing supply: net additional dwellings, England: 2020 to 2021 – GOV.UK (www.gov.uk)

 

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