Pockets of unmet housing need are developing in key markets outside of London. A combination of a lack of willingness among local authorities to embrace growth, planning policy constraints and land availability within urban local authorities with tight administrative boundaries, has acted to restrain housebuilding targets below the level of actual need. In such circumstances, housing requirements are likely to spill over council boundaries and thus increase pressure on neighbouring authorities.

This problem of ‘overspill’ growth is unlikely to be effectively addressed unless local authorities engage proactively as required by the ‘duty to cooperate’ established in the Localism Act 2011.

The white patches on the map below (Map 3) show the areas most likely to come under pressure from an overspill of unmet need. These are some of the key pinch points in supply that need to be addressed:

click image below to enlarge

^{Source: Savills Research}

■ Horsham, Mid Sussex and Lewes are likely to see demand for housing arising from Crawley, Reigate and Banstead from the north as well as from a string of coastal towns in the south including Brighton, where growth is constrained by the South Downs National Park.

■ Bracknell Forest, Wokingham and Basingstoke and Deane may increasingly face pressure of housing need arising from Reading, as well as West Berkshire and East Hampshire, where adopted plans do not meet housing need.

■ Development constraints in Oxford means that the city’s growing housing requirements will need to be met in the adjoining authorities of Vale of White Horse, Cherwell, West and South Oxfordshire.

■ Milton Keynes has an adopted plan but the targets are to be reviewed with preparation of a new SHMA. The effect of this is likely to be an increase in pressure in the adjoining authorities of Aylesbury Vale and Central Bedfordshire.

■ Unmet need in Luton and Stevenage will put pressure on Bedfordshire and Hertfordshire.

■ The greatest unmet need will arise out of London which has a land constrained housing target of 42,000 relative to need of between 49,000 and 62,000 according to the SHMA. This will put pressure on markets throughout the Home Counties.

Housing need does not respect local authority boundaries. As it stands, the ‘duty to cooperate’, has not been enough to encourage councils to look beyond their own needs and work together. This aspect of the planning system needs strengthening.

See Savills Manifesto.