Planning permissions granted for new homes are being concentrated in the wrong areas, where there is less need for housing, according to new research by Savills. It found that there is a lack of 90,000 planning consents for homes in the least affordable and most in-demand areas of the country. Only 20pc of planning consents in 2016 were in the most unaffordable places, where the lowest priced homes are at least 11.4 times income. 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 .