Supply & Density

The Deficit in Brick & Mortar: UK's Housing Scarcity

Published: Q1 2026 Reading Time: 1 min

The UK has far fewer dwellings relative to its population than other developed nations, with just 446 homes per thousand inhabitants, fewer than France (591), Italy (598), and the OECD average of 487 [1]. Closing the gap to the OECD average alone would require approximately 2.8 million additional homes [2].

The persistent undersupply of housing in the UK has created a system built around structural scarcity. Demand keeps growing, from both homeowners seeking stability and investors targeting appreciating assets, but the housing stock hasn't kept pace.

Dwellings per 1,000 Inhabitants The UK holds fewer dwellings per head of population than most comparable developed nations.
  • United States 428
  • United Kingdom 446
  • Netherlands 454
  • OECD Average 487
  • Japan 493
  • Germany 518
  • Spain 563
  • France 591
  • Italy 598

completions and Local Disparities

Completion rates remain modest relative to the size of the existing stock. In 2024-25, new-build completions ran at 33 per 10,000 people in England, 35 in Scotland, 32 in Northern Ireland and 15 in Wales [3]. At roughly three homes per thousand people a year, the per-capita gap described above closes over decades rather than years.

Commercial real estate points to a parallel structural shift. Central London office vacancy stood at 10.1% in Q3 2024, above its ten-year average of 9.0%, with the City higher still at 11.8% [4]. That is a meaningful pool of underused floorspace, some of which could be suitable for conversion to housing.

Citations & Sources

  1. Home Builders Federation, Housing Horizons: Examining UK Housing Stock in an International Context (October 2023), OECD benchmark of 487 (2020 data). The UK figure (446 per 1,000) is a combined calculation across all four nations - see Four Nations, Four Markets for the by-nation breakdown and sources.
  2. Deficit calculation: (487 − 446) × 68,265,200 ÷ 1,000 ≈ 2,798,873 homes. UK population: ONS mid-2023 population estimates (68,265,200).
  3. Scottish Government, Housing supply across the UK. New-build completions per 10,000 population, financial year 2024-25.
  4. BNP Paribas Real Estate, Central London Offices Update, Q3 2024. Central London vacancy 10.1%; City 11.82%; ten-year average 9.0%.