- New analysis by the Centre for Policy Studies reveals that the UK has a shortage of 6.5 million homes when compared to similar European countries
- Britain has just 446 homes per 1,000 people, the second worst rate in Europe. This compares to 560 in France, 516 in Germany, and a European average of 542.
- England accounts for 5.85 million of the missing homes, while London has the largest regional shortage at 1.1 million
- Mass migration has contributed significantly to the problem, but the bulk of the shortfall is due to under-building. France has expanded its housing stock by almost 40% more than the UK, year after year
- European evidence suggests that if we had built to the average number of homes per head, house prices would be approximately £75,000 lower
- To close the gap by 2040, the UK needs to build 565,000 homes per year, more than double the current rate
Decades of lacklustre housebuilding and recent record migration have left the UK with a shortfall of more than 6.5 million homes, according to new research from the Centre for Policy Studies that reveals the devastating scale of Britain’s housing failure.
The analysis by Ben Hopkinson, the think tank’s new Head of Housing and Infrastructure, shows how the UK has fallen dramatically behind comparable European countries, with British families paying the price through unaffordable homes.
‘How Many Homes Does the UK Need?’ reveals that if England had matched France’s housebuilding rate since 1982, we would have built 2.9 million more homes. England’s housing stock grew over those years by 0.8% per year, compared to France’s 1.1%.
The economic impact is stark. The research shows the median London worker earns 17% more than the median UK worker, but once rent is factored in, they are actually 3% worse off. Workers across the country are being priced out of productive areas where they could earn higher salaries, hampering economic growth and innovation.
The analysis also evaluates the impact of the recent wave of mass migration. In the years 2021-2023, the peak of the recent migration wave, the number of homes per capita actually fell in England despite our expanding the housing stock by 470,000 homes, as record-high migration lowered the number of homes per head. Yet we also show that if net migration had been kept to the tens of thousands since 1997, the housing gap would only be a third lower than its current level.
The research finds that on recent trends, the UK will not reach the current European average of 542 homes per 1,000 people until 2115. This trajectory condemns future generations to increasingly unaffordable housing and reduced living standards.
Ben Hopkinson, Head of Housing and Infrastructure at the CPS, said:
‘These 6.5 million missing homes should be a wake-up call to policymakers from across the political spectrum. Failure to build more homes means British people, especially those in England, are being condemned to smaller, more expensive houses than our European neighbours. Workers are priced out of our most productive cities, and couples are unable to have the families they desire.
‘It is possible to eliminate the shortage, boost wages, increase disposable income, and make the UK a fairer country generationally and regionally, but we need dramatic changes to our policies on planning, housebuilding, and immigration. The solutions are within reach – politicians just need to show their commitment to truly addressing the scale of the problem.’
ENDS
NOTES TO EDITORS
- Ben Hopkinson is Head of Housing & Infrastructure at the Centre for Policy Studies and former Head of Research at Britain Remade
- ‘How Many Homes Does the UK Need? is available here
- For further information and media requests, please contact Emma Revell on 07931 698246 and [email protected] or Melisa Tourt on 07399 251110 and [email protected]
- The Centre for Policy Studies is one of the oldest and most influential think tanks in Westminster. With a focus on taxation, economic growth, housing, immigration, and energy abundance, its goal is to develop policies that widen enterprise, ownership and opportunity.
Date Added: Tuesday 1st July 2025
