The number of households in Britain is expected to rise by almost a quarter over the next 20 years, according to the government, an increase which is likely to put further strain on the country's limited supply of housing. The Office of the Deputy Prime Minister (ODPM) has raised projections made in 2002 by about 10% and said the main driver would be an increased number of people living on their own due to divorce or living longer at home in old age once a spouse had died. It said the number of households would rise from 20.9m in 2003 to 25.7m by 2026, an annual increase of 209,000, of which 150,000 would be due to a higher number of single people living alone. Of that 150,000 rise, almost all will be among the over 35s and a third among the over 65s. About 60% of the expected rise will occur in London, the south-east, the south-west and the east of England. The slowest growing regions are likely to be the north-east (11%), the north-west (18%), and Yorkshire and the Humber (19%), compared with the national average of 23%. The ODPM also said the number of married couple households was projected to fall rapidly between now and 2026, although that would be partly offset by an increase in cohabiting couple households. But the number of married or cohabiting couple households is still likely to fall from 55% of the total now to about 47%. The number of lone-parent households is also predicted to rise to 1.88m by 2026 from 1.57m now, although that is in line with the general increase. The Home Builders' Federation (HBF) expressed alarm at the figures, saying Britain's restrictive planning regime had caused annual new house-building to fall by 50% over the past 30 years. These latest household projections illustrate the new reality of England's housing predicament. The HBF said that if house-building remained at 2005 levels, when about 160,000 dwellings were built, there would be a shortage of 50,000 homes across England by 2026. These projections reiterate the need for a market-informed planning system that can deliver the right homes of the right type in the right places, so providing choice and enabling all parts of the market, including first-time buyers, to meet their housing aspirations. The government said it was aware of the problem and was responding positively to a review of the country's housing supply carried out by the Bank of England two years ago, which recommended house-building be raised to 200,000 a year. The housing minister, Yvette Cooper, said: "We have an ageing, growing population with more people living alone, and if we don't build more homes to meet that need, we will see house prices rise further, pushing first-time buyers out the market. These figures show how important it is to build new homes for the next generation in every region. As the Barker report sets out, more houses are needed in all regions of the country. Rising housing demand is not just a southern phenomenon. As the recent State of the Cities report indicated, many cities in the north and west are developing successful economies and reversing the decline in population growth. Article date: July 2006

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