Where are the right places for England's new homes?

Some houses. Image: Getty.

A housing white paper is due in the New Year, one which communities secretary Sajid Javid promises will get “more of the right homes built in the right places”. But where are the right places?

As we know, the housing shortage is not felt equally everywhere. Regional price growth has varied enormously since the crash. But even within regions there are large differences between areas. Nor can these problems be expressed purely in terms of house prices, either, because prices are determined as much by economic demand and speculation as anything else.

To try to establish a sense of the under-supply of new housing at a local level, we compared last year’s output against expected household growth, which is what you might say – not without a few caveats, admittedly – is the rate at which new homes are thought to be needed.

Nationally, the net supply of housing in 2015-16 was about 90 per cent of the annual household growth rate that is projected by government statisticians for the period 2019-39. But that national average disguises very large variations between areas that are producing more than enough homes, and others that are falling a long way short.

Click to expand.

Worse, those areas that are expected to grow most rapidly over the next 25 years are, on the whole, already performing least well against their household formation projections. London, which taken as a whole is the fastest-growing area of the country, had new homes equivalent to only 55 per cent of its long-term household growth rate. Only three boroughs (if you include the City of London; not technically a borough and tiny in population terms) built above that rate.

The next 30 fastest growing areas of the country after London fared similarly: only five were keeping up with their household formation projections, and 21 were not even doing as well as the national average of 90 per cent. London plus the next 30 areas that are expected to see the most household growth over the next 25 years – collectively accounting for 48 per cent of it – supplied just 36 per cent of new housing last year.

This was not confined to the South-East, either, but was an issue in places that are the focus of economic growth strategies, such as Greater Manchester (Bury, Manchester, Oldham, Rochdale, Salford, Stockport, Tameside, Trafford and Wigan), which supplied new homes equivalent to 68 per cent of its long-term growth rate. The West Midlands (Birmingham, Coventry, Dudley, Sandwell, Solihull, Walsall and Wolverhampton) managed just a little bit more, at 71 per cent.


This raises a variety of issues. The most obvious one, perhaps, is how do we ensure those areas with an under-supply build more homes? This is a many-faceted problem, of course, probably requiring local investigation, although quite a few people have justifiably pointed out a strong correlation between the red patches on this map – denoting a shortfall in housing – and the green belt.

But it also raises important questions about whether those areas that are failing so badly to keep up with household growth will ever keep up with it – and whether the answer doesn’t lie in trying to draw off demand to other areas.

In some case this might require only local movement. There are examples already in, say, Oxfordshire, which has a county-wide surplus of homes measured against household formation, despite a deficit in Oxford itself. This kind of thing lies at the heart of the planning system in the “duty to cooperate”, in which local authorities are meant to share the burden of household growth across boundaries.

But there are limits to this, as can be seen in London and the broad swathes of the South-East in which there are hardly any areas that are keeping up with their own household growth, never mind their neighbours’ too.

And so it may also require a degree of regional rebalancing, from London and the South-East in particular and towards some of those areas that are coping better already with household growth. This may happen naturally to some extent, as a result of these very pressures and their impact on house prices. But for demand to shift on a bigger, more meaningful scale would require substantial regional jobs growth, and the transport infrastructure to support it.

Where are “the right places” for new homes, then? Perhaps the more important question is: where do we want them to be?

Daniel Bentley is editorial director at the think tank Civitas and tweets @danielbentley. His briefing paper “Housing supply and household growth, national and local” was published this week.

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Here are all the names of London tube stations that we’ve just stopped noticing are weird

What the hell. Swiss Cottage. Image: Oxyman/Wikipedia Commons.

Angel

 “The next station is Gnome. Change here for Elf, Cherubim and Gnome.”

Arsenal

Would be a lot less weird if it wasn’t a good eight miles away from where they actually built the arsenal.

Bank

It’s like something from a kid’s picture book where everything is labelled incredibly literally. Was even sillier when the next station along was still called Post Office. (It’s St Paul’s now.)

Barking

Disappointing lack of doggos.

Barkingside

Same, also a surprisingly long way from Barking.

Bromley-by-Bow

But not by Bromley which, once again, is eight bloody miles awy.

Canada Water

No.

Chalk Farm

Chalk isn’t a plant, lads.

Cockfosters

...

Elephant & Castle

What.

Grange Hill.

Hainault

Hang on, that’s in Belgium isn’t it?

Hornchurch

There are literally horns no the church, to be fair.

Kentish Town

Actually in Middlesex, nowhere near Kent.

Knightsbridge

Not only no knights, but no bridge either.


Oval

Might as well have a station called “oblong” or “dodecahedon”.

Oxford Circus

Plenty of clowns though, amirite?

Perivale

Does any other London suburb promise such a vertiginous drop between name and reality?

Plaistow

To be honest the name’s fine, I just wish people knew how to pronounce it.

Roding Valley

The river’s more than 30 miles long, guys, this doesn’t narrow it down.

Seven Sisters

None that I’ve noticed.

Shepherd’s Bush

“Now where are those sheep hiding now?”

Shepherd’s Bush Market

Because one bush is never enough.

Southwark

1. That’s not how that combination of letters should sound. 2. That’s not where Southwark is. Other than that you’re fine.

Swiss Cottage

Sure, let’s name a station after a novelty drinking establishment, why the hell not.

Waterloo

Okay, this one is definitely in Belgium.

Jonn Elledge is the editor of CityMetric. He is on Twitter as @jonnelledge and also has a Facebook page now for some reason. 

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