The chairman of the New Homes Marketing Board has warned that England could be one million homes short by 2010.
England could be faced with a shortfall of more than one million homes by in less than two years, David Pretty, the chairman of the New Homes Marketing Board (NHMB) has warned.
The organisation was created by the Home Builders' Federation in 1982 in order to promote the latter's business. However, it has a stark message on the future of England's property market.
Mr Pretty, a former chief executive at building firm Barratt, explained that 230,000 new homes should be being built each year, but the number being constructed has been closer to 160,000 - and this is set to fall to around 75,000 as a result of the large-scale problems in the construction industry during the recession.
With an estimated shortfall of 450,000 already in 2004, the figures result in some "stark arithmetic". The problem will be exacerbated when the mortgage market returns to normal levels, as many people suddenly attempt to get onto the property ladder.
He said: "By 2010, pent-up demand for homes to buy, to rent and for social housing could well be over one million, and that is dangerously high." This lack of supply will then see prices shoot back up to 2007 levels, possibly within five years, Mr Pretty added.
