The UK currently has the second fewest homes per 1,000 people among major Western European countries. To align with the average, the UK requires an additional 6.9 million homes, an increase from 6.5 million homes based on 2023 data.
England alone accounts for 6.2 million of these missing homes. Since the early 1980s, England's housing stock has grown by an average of 0.82% annually, while France's has increased by 1.07% per year. Matching France's growth rate would necessitate building 246,000 homes annually in England, compared to the current average of 178,000 homes per year.
Had England matched France's building rate since the early 1980s, it would have 2.9 million additional homes, which could have closed half of England's housing shortage. High levels of migration have reduced the number of homes per 1,000 people in England since 2021, despite 1.1 million homes being built since 2020.
It is estimated that if net migration had been capped at 100,000 a year since 1997, and housebuilding rates remained unchanged, England would have 473 homes per 1,000, addressing approximately a third of the gap with Western Europe. A recent spike in migration may have contributed to house prices being roughly £15,270, or 5.2%, higher in England than if net migration had stayed in the tens of thousands since 2020.