A U.K. think tank has issued a dire warning for the country’s housing market over the next 20 years as supply and demand diverge and create a shortage of homes, according to Bloomberg. On Monday, the Institute for Public Policy Research warned that England is facing a 750,000 home shortfall by 2025, a problem that will be concentrated in London, which is projected to see a 325,000 home shortfall. Yorkshire and Humberside would see a 151,000 home shortfall, while North West of England will be the only region to meet demand.
IPPR director Nick Pearce said, “Britain needs to build more homes,” warning, “If the rate of house building doesn’t radically increase, we face a growing housing crisis.” The bleak message comes as the country’s housing market struggles to rebound, with home prices falling as mortgage approvals and the supply of homes on the market remains low. Pearce said, “A serious gap looms between housing supply and demand” regardless of the performance of the economy as a whole.