There are currently 825 homes for every 1,000 families in the UK, according to think-tank Resolution Foundation.
This figure means 1.7 millions families have no choice but to live in shared accommodation. Contrarily, only 550,000 families were living in shared accommodation in 1991.
Lindsay Judge, Senior Research and Policy Analyst at the Resolution Foundation, said: “The number of families sharing in the private rented sector has trebled since the 1990s. This is likely to be more from necessity than choice. Independent living is simply unaffordable for many young families.”
The UK has been suffering from a housing crisis for the past 20 years. A growing population has exceeded housing supply.
High rental demand areas, such as London, Birmingham, Manchester and the South-East have the highest housing shortage rate.
Currently, 222,000 are built in the UK each year. However, this is below the 300,000 target, set by the Government, to address the housing crisis.
“Recent government action looks to have at least stopped the housing stock squeeze getting worse. But far more is needed to get to grips with this crisis. At current building rates, we’ll be waiting another 20 years before we’re back to where we were in the 1990s”, said Ms Judge.
Source: Resolution Foundation
Sign up for weekly property market news.