Housing shortage is cause for concern, says expert

A lack of housing in the UK could see demand outstrip supply when prices stabilise and people start looking for properties to buy, it has been suggested.

Knight Frank's head of development research, Jon Neale, said that the long-term housing shortage in the UK is not a factor that features in many reports on the market.

He claimed that while there is "intense stress" as a result of financial "chaos" in the market, this shortage should be considered.

"At some point people will want to start buying homes again and they'll discover there is a shortage out there when prices go up again because demand will outstrip supply," Mr Neale added.

One possible solution to this shortage could be that more people will opt for self build.

The most recent Savills Residential Property Focus report suggested that by the end of 2010, the number of additional new properties built in England through conversion and new development will drop to under 130,000.

At the end of 2007, this number peaked at 200,000.