The UK is facing a significant housing crisis as demand for homes continues to outstrip supply. Housing prices are predicted to increase 50% over the next decade due to lack of new construction. There is currently a shortage of over 1 million homes. Several UK cities like Birmingham are facing shortfalls of tens of thousands of homes as populations grow rapidly. A long-term strategy is needed to increase housing supply through partnerships between investors, developers, and local governments to address land acquisition and new construction.

1. UK SUPPLY AND DEMAND
UK housing crisis

2. Introduction
This presentation is a taste of the housing
crisis that the UK is facing.
Prices of homes across the UK are predicted
to jump by 50% in the next 10 years as a
shortage in housing supply continues to push
up prices, according to a report by the Centre
for Economics and Business Research
(CEBR)..
Housing campaign groups warn that with 1.4
million households on council waiting lists – a
34% rise since 1997 and 85,000 children
living in temporary accommodation –
equivalent to more than the entire population
of the Hertfordshire town of Stevenage, the
government now has to put pressure on
builders to meet affordable housing targets.
There is currently a 76pc
shortfall in rural housing,
which is forcing people to
move out of country towns,
and is driving up house prices
to unaffordable levels.
The call came as new figures
showed that UK house prices
grew at their fastest pace in
eight months this December,
and amid warnings that a
shortfall of new homes could
push the growth in prices

3. Introduction
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1970 1972 1975 1980 1990 2010
AxisTitle
UK housing decline picture developing over
decades
UK housing decline
picture developing over
decades

4. Introduction
The number of housing
completions in the UK has fallen
from 378,000 in 1969-70 to
141,000 in 2013-14, according to
the Department for Communities
and Local Government.
The number of housing
completions has fallen behind
population growth.
In simple terms, supply is not
meeting demand.
This mean’s a
opportunity exists to
optimize ?
The Confederation of
British Industry (CBI)
believes Britain needs
to build 240,000
houses a year to keep
up with population
growth. In some parts of
the country, we're
building half that.

5. Valuations
The average London salary in 2013 was
£30,479, according to the ONS. Compare
that with the average London house
price of £428,000. Prices continue to rise.
The latest house price data show the cost
of a home in the capital rose to a
staggering £514,000 in July, taking the
average price above the 4pc stamp duty
threshold.
This is good news for investors,
buy sit and wait for valuations to
enhance.
A chronic shortage of properties continues
to drive house prices upwards across
Britain.
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Simon Rubinson, chief economist at Rics, said
lack of supply was the core issue for the market.
“The legacy of the drop in new build following
the onset of the global financial crisis is now
really hitting home, with both the sales and
letting markets continuing to show demand
outstripping supply,” he said.
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Annual pace of house price growth across
England and Wales climbed to 5.2 per cent —
the fastest rate of increase seen on that index
since April, with the average property jumping
£2,500 in October.

6. UK Government Plans / Solutions
The Conservative chancellor
said inhis Autumn Statement
for 2015 that he will double
the house building budget to
£2bn ($3bn) and help to get
400,000 new affordable
homes under way by 2020. I
say under way, because the
specific term the Treasury
uses is not housing
completions, but housing
"starts".
While Developer’s are getting ready to
put down the foundations – Osborne will
make credit even cheaper for
homebuyers in London, who face,
according to the Office for National
Statistics (ONS), an average property
price of £531,000. The average for
England is £299,000.
Under his new London Help to Buy
Scheme, an extension of the existing
cheap credit funnel, Londoners with a
5% deposit will get an interest free loan
worth up to 40% of the property's value.
This will make it easier to buy a home,
but does not get more built and London
needs more built.

7. Investor & Local Government
partnership
Part of implementation
strategy has to at some
degree have a connection
with central government
departments, national
agencies and local
authorities to develop
specialist support for a
wider range of
infrastructure housing
programmes.
I believe it would be vital and help
make it smooth in our operation of
business if we developed
relationship’s with core community
leaderships.
The add on effect would be
targeting the roots and enhancing
our image as a caring friendly
partner in helping solve the local
housing issue’s in their area’s.
Portraying a good image is
extremely important in achieving not
only our goals but also meeting our
ethical and corporate social
responsibility.

8. Mechanics
Dazzling wealth of investors from Russia, China and
the Middle East, are already backing UK property
developers in pursuit of their share of the housing
crisis cake.
Developers have bounced back from the crash with
bigger plans than ever before, acquiring vast areas of
land with the ambition to operate like the great estates
of yore.
Terminology of the UK is to privatize, lets get the
investment coming in and investors to reap rewards as
long as solve our problems.
This is good news for all, foreign investor’s acquire,
develop, add value and enhance valuations.
This is a serious opportunity that entails in depth due
diligence in acquiring the correct locations, land,
costing of developing and the right attraction to lure
buyers.
Luckily there isn’t
much of concern in
finding buyer’s. the
demand is plenty.

9. Property Developers
Britain’s ten biggest house
builders will this year make
profits of more than £2bn for
the first time since the high
water-mark of the last credit-
fuelled property boom.
The surge in profits comes
despite the number of
affordable homes built in
England falling to an eight-
year low.
Bureau of Investigative Journalism
shows that the country’s biggest
builders, who between them control
enough land to create 480,000
homes, made pre-tax profits of over
£2.1bn in 2014 – a 34% jump on
last year.
At a time when the country faces a
housing crisis and with
homelessness having risen
significantly in recent years, we
desperately need developers to
provide more affordable homes,”
said Jon Sparkes, chief executive of
homeless campaign group, Crisis.

10. Demand & Gap. Cities across the
UK
0 40000 80000 120000
East Midlands
East England
London
North East
South East
South West
West Midlands
Yorkshire & Humber
9
Estimated Annual
Demand
Gap

11. Demand
This is not simply a London story – the
shortage of supply of new homes is creating
pressure across the country, the chart above
clearly illustrated by breaking down demand
across the country, it shows the difference
between annual demand and completions of
new homes is unsurprisingly most acute in
London and the South East; but the picture is
far from rosy in many other areas.
The East of England, the Midlands and
Yorkshire and Humber also show significant
gaps between demand and supply
By 2027, our population is set to reach 70
million – we need to make sure everyone has
a décent roof over their head
The rapid rate of new household
formation (additional individuals, couples
and families needing a home for reasons
like marriage breakdown or moving out
of the family home) helps to illustrate the
scale of the gap between demand and
supply.
Figures for 2013 put the number of
households
in the UK at 26.4 million: if these
projections play out as suggested, we
will see an extra 2.7 million new
households by 2021.
That’s an extra 337,500 new households
looking to put a roof over their heads
every year.

12. Example / Birmingham
Birmingham's housing shortfall has been
underestimated by 5,000 – despite plans
to build in the green belt - new
documents reveal.
Spiralling demand for new housing has
seen the city's overall requirement rise to
89,000, compared to the 84,000
predicted.
However, the city can only find space to
build 51,100 - meaning the shortfall is
creeping close to 38,000.
Rising demand comes as the city's
population is expected to soar by
150,000 - equivalent to the population of
Oxford - over next 16 years.
Birmingham City Council's director of
planning and regeneration, Waheed
Nazir, said co-operation across the West
Midlands was vital to addressing the
issue.
He said: "Clearly, Birmingham can't meet
its housing requirement and as a
consequence we are going to have to
work together closely, moving forward.
"Combined authority or no combined
authority, there is already a duty to co-
operate. We have to work together as
neighbours. But a combined authority
would bring greater cohesion to the
issue of dealing with the housing
requirements of the region.

13. Land
Mark Hayward, managing director of NAEA, says:
‘We’ve been banging the drum about the dwindling
supply of housing for a while. There simply aren’t
enough houses to match demand and we’re reaching
crisis point.’
Local councils have been ordered to draw up plans
that set out how many new houses are needed in their
area and identify possible sites for building.
They must work with neighbouring areas that may not
have as much space to help plug the gap.
And the biggest rows of all are around major cities,
where there are jobs and where the nearest available
space tends to be green belt land.
But due to extreme pressure’s of the crisis the
Government is showing flexibility in targeting green
belt area’s. This is good news for developer’s.

14. Strategy
I believe in the interim the
short strategy for the
implementation of action
of plan should be to
forming connections with
the UK government and
the Local Bodies, property
developers, land owners,
and finally the real estate
agent’s to advertise and
execute sale’s.
I do not believe it would
be viable to acquire land
in or near london although
the highest demand for
housing is based n this
location. It would be more
cost efficient to consider
cities such as
Birmingham, Manchester
and other wider growth
area’s.

15. Strategy
Yes I totally would
recommend a more
comprehensive strategy
based on in depth research
and due diligence for a strong
foundation to build for long
sustainable growth plans.
I believe this is a huge giant
of a opportunity to optimize
and poses a great challenge
with fantastic rewards.
These are just a few
base points I have
touched to show you
the picture.
Sajed Hussain