Issues for new house build

In the southeast of England, the number of new homes built has fallen far below the numbers needed to keep pace with demand, and house prices have risen above inflation.

There are several reasons why new houses are lagging behind demand:

Much of the land in the southeast, particularly in and around London, cannot be built on because it is Green Belt, or has a planning designation such as 'Area of Outstanding Natural Beauty'.
Government policy is to concentrate new housing on previously developed land where possible, and to achieve at least 60% of new houses on 'brownfield sites'.
Such sites can be difficult to develop, because of previous use issues or poor ground conditions. They are often too far from adequate roads or public transport and therefore need substantial investment before they can be developed. They are also generally of insufficient size to provide additional land for schools or local facilities.
Where the land can be developed, the lack of existing amenities - such as schools, shops, parks and leisure facilities - can mean sales are slow, as people tend to want to live where amenities already exist or can be provided as part of a sustainable development.