Cities 'must adapt' to housing needs

The government must tailor new housing to the needs of city economies if it is to meet its target of building three million new homes by 2020, according to a new report.

The Centre for Cities said on Thursday that increasing overall housing supply would not be enough to tackle the economic challenges facing towns and cities.

It said that some cities, such as Cambridge and Bristol, had problems with affordability and supply, while others, such as Hull, Sunderland and Bradford needed a wider range of private housing made available.

Centre for Cities director Dermot Finch said: "If we want to see the right houses in the right places, 'build, build, build' isn't always the answer. 

"It's not enough to talk about the big three million target - politicians from both central and local government need to understand where in Britain's jigsaw of local economies new houses should be built.

"It's time for cities to develop a far deeper understanding of local housing markets."

Simon Rubinsohn, the chief economist at the Royal Institution of Chartered Surveyors, said it was "essential that housebuilding does not completely dry up as a result of the current economic conditions".

"Rather than simply looking at delivering a number of units, housebuilding needs to be tailored to respond to local demand and housing need," he said.

Housing minister Caroline Flint acknowledged that it would be a "challenge" to build three million new homes by 2020 but she told BBC Radio 4's Today programme that it was still a "valid target".

The "modest fall" in house prices had followed a 40 per cent increase in prices in recent years, the minister said.

"We want to create more homes being built to make sure we have a more stable market," she added.