Dwellings up 2.1 million over past 10 years, while more than half of owner-occupied homes are under-occupied
England’s housing stock has grown by 2.1 million dwellings over the past decade, reaching 25.4 million in 2023, according to figures from Nationwide Building Society.
The 9% increase slightly outpaces the 7% rise in population during the same period. Owner-occupied homes continue to make up the majority, accounting for 16.3 million properties, or 64% of the total.
Privately rented homes represent 19%, while the social rented sector, including local authority and housing association properties, comprises 16%.
“There has been relatively little change in the overall composition of the stock by property type over this period,” said Andrew Harvey, senior economist at Nationwide. “However, there have been some shifts across tenure.
“In particular, flats now account for a higher proportion of privately rented dwellings – 42% of the stock – up from 38% in 2013. Flats are also the predominant property type in the social rented sector, accounting for 45% of dwellings. The picture is very different in the owner occupier sector, where flats represent just 10% of properties, with semi-detached most prevalent at 29%.”
According to Nationwide’s housing stock special report, typical property sizes have increased slightly over the last decade. Since 2013, the average floor area has increased from 95.3 to 96.2 square metres. The largest increase has been in terraced houses, where the average floor area is 3.6% bigger than in 2013. But the average size of flat, the smallest property type, is now 1.7% smaller than 10 years ago at 60.3 square metres.
Owner-occupied homes have the largest average floor area at 112 square metres, compared with 76 square metres in the private rented sector and 65 square metres in the social rented sector. The prevalence of flats in the rental markets contributes to these lower averages.
Compared to the European Union, where the average dwelling size is 103 square metres, English homes are generally smaller. Notably, countries such as the Netherlands, Norway, and Belgium have larger average properties, while eastern European countries tend to have smaller homes.
In terms of bedrooms, 87% of owner-occupied homes in England have at least one spare bedroom, and 53% are classified as ‘under-occupied’, meaning they have two or more spare bedrooms. This trend has been increasing over time.
By comparison, only 16% of private rented homes are under-occupied. Overcrowding is more prevalent in the social rented sector, where 8% of properties are considered overcrowded according to the bedroom standard.
Meanwhile, energy efficiency has improved over the last decade, supported by new construction standards and retrofitting measures such as insulation. Low-carbon technologies, including air source heat pumps, remain rare, with only 1.1% of English homes using them as the main heating system.
Rural areas have a higher proportion of heat pumps than urban locations, reflecting differences in access to mains gas. Solar panels are more common, installed on nearly 6% of homes, and uptake is higher in properties built within the last decade. Electric vehicle charging points are available at 7% of dwellings, with newer homes more likely to have this feature.
“Decarbonising and adapting the housing stock is critical if the UK is to meet its 2050 emissions targets especially given that emissions from residential buildings account for 15% of the country’s greenhouse gas emissions,” Harvey said.
“There is significant variation in the energy efficiency of the housing stock across different tenure types. Energy efficiency is typically much better in the social rented sector, due in part to tighter regulation. For example, 72% of properties in the social rented sector are rated ‘A’ to ‘C’, compared with 48% in the private rented sector. The owner occupier sector is broadly similar to private rented, with 49% rated ‘A’ to ‘C’.”
“It’s really positive to see that the number of homes being built continues to grow, as we know that our population and the desire from people to move home continues to increase year on year,” said Mary-Lou Press, president of industry body NAEA Propertymark.
“However, we need to make sure that these homes are meeting ongoing societal and cultural evolutions. For example, more people than ever now live alone, and a large portion of them are aged 65 years or older, meaning property specification, type, and tenure all need to be put under the microscope to ensure homes are meeting the requirements of the nation.”
For mortgage brokers, the growth in housing stock and the continued dominance of owner occupation indicate sustained demand for mortgage products. Evolving tenure patterns, rising energy efficiency standards, and changes in property types create opportunities to advise clients on suitable finance options, including green mortgages and products tailored to shifting household needs. Staying informed on these trends will help brokers better serve both new buyers and those seeking to remortgage.
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