However, 40pc of the country’s total need for new homes is in these markets, while there is a surplus of consents in the most affordable locations. There are too few planning permissions being granted in areas of most need , according to real estate firm Savills . Its research found there is a shortfall of 90,000 planning applications in the most in - demand and unaffordable areas of the country . Just one in five planning consents last year were in the least affordable areas , which are London and the south - east , where the house - price - to - demand ratio is at least 11.4 , despite 40 % of the country 's total need for new homes being in these markets . Savills concluded that the shortage of homes could hinder economic growth .
There are too few planning permissions being granted in areas of most need , according to real estate firm Savills . Its research found there is a shortfall of 90,000 planning applications in the most in - demand and unaffordable areas of the country . Just one in five planning consents last year were in the least affordable areas , which are London and the south - east , where the house - price - to - demand ratio is at least 11.4 , despite 40 % of the country 's total need for new homes being in these markets . Savills concluded that the shortage of homes could hinder economic growth .