Affordability problem 'set to get worse'

The problem of the task of affordable new homes in Britain could be set to get worse due to the shortfall in the number of homes being built, the Home Builders' Federation (HBF) has warned.

Director of external affairs at the HBF John Slaughter said there would be major repercussions if the situation continued, commenting: "Affordability will continue to be a problem, because there will be an imbalance of supply and demand and that will be reflected in comparatively high price levels."

This could make the overall affordability situation worse than now and in turn create economic problems as people will find it harder to get homes in places near to where they work.

Such trends may mean that self build is the best way for some to ensure they have a home of the right kind and in the right place to meet their needs.

A report by global asset management company AllianceBernstein last month said that Britain had been building 148,000 new homes a year for the last decade, compared to the 179,000 households formed.