Social Housing Growth Lags Behind Rising Demand in England, Research Finds
New analysis highlights largest gap between housing supply and need since 2019
England is facing an escalating social housing crisis, with the gap between the number of new affordable homes and the growth of the non-working population reaching its widest point since 2019, according to new research from property data specialist Search Acumen.
The study reveals that over the past year, the disparity has surged by 173%, equating to 12 additional economically inactive individuals for every new affordable or social home built. Search Acumen estimates a potential shortfall of 296,606 affordable and social homes in 2024, highlighting the scale of the country’s housing deficit. Since 2019, the increase in economically inactive individuals has been nearly ten times greater than the growth of the working-age population, underscoring the urgent need for action.
The findings point to significant pressures on government and housing providers alike. While the research focuses on England, similar challenges are likely affecting the wider UK housing market.
The report highlights stark declines in new housing starts. In 2024, affordable home construction fell by almost 38%, marking the lowest level since 2015. London experienced an 88% decrease in starts between 2022 and 2024, with just nine units commenced under the London Affordable Rent scheme. This sharp drop follows the conclusion of the 2016-23 Affordable Homes Programme, which had been a key source of funding.
Andrew Lloyd, Managing Director at Search Acumen, said:
“Our research confirms that England is not building enough homes fast enough. With around 4.5 million social homes today, down from 5.5 million in 1979 due to demolitions, conversions, and inadequate rebuilding, the need for urgent intervention has never been clearer. The waiting list reached 1.33 million households last year and could rise to two million by 2034 if social housing output remains unchanged.”
Lloyd added that economic pressures, including rising costs, labour shortages, and tighter profit margins, make private sector solutions increasingly challenging, highlighting the critical role of government-funded social housing schemes. He noted that the £39 billion Social and Affordable Homes programme, announced earlier this year, is expected to provide essential support for providers over the next 18 months.
The research also reveals that planning permissions for major residential developments, often including affordable housing through Section 106 agreements, have fallen by 41% compared to peak levels from 2016 to 2018. This decline, combined with fluctuating private demand, presents further challenges for housing providers.
“Technology will play a key role in closing the gap,” Lloyd continued. “High-volume, low-margin social housing projects will require AI and digital tools to streamline planning, tendering, and legal processes. Without these innovations, delivering sufficient homes at pace will be impossible.”
The report concludes that addressing England’s social housing shortfall requires urgent government action, strategic planning, and investment in technology to meet the growing demand for affordable homes and support a sustainable housing future.
