The latest housing stock data affects the minimum local housing need that arises from the government’s new standard method, first published in December last year. As a consequence of the updated affordability ratios published in March 2025 and the new housing stock data, the standard method now suggests that there is a need for slightly more homes than was the case at the time the new standard method was introduced. According to the standard method, there is now a minimum local housing need for 370,948 homes per annum across England, as compared to 370,408 in December 2024, a modest 0.1% increase.

22nd May 2025: By comparison to the minimum need for 370,948 homes per annum, on average only 231,234 have been built over the last five-years. In the latest year for which information is available 2023/24, the housing stock increased by 0.087%, which is the lowest proportionate growth since 2015/16. This provides some indication of the disparity between the level of housing identified as being needed by the government to respond to the housing crisis and what is actually being delivered.

To respond to the challenge and address housing needs, there will therefore need to be a substantial boost to housing supply across England and in each local authority will need to play its part by planning for and delivering an appropriate level of housing.

The key points to note from a regional perspective are:

  • Since the introduction of the new standard method, the minimum need for housing has remained broadly consistent although it has minimally increased in every region with the exception of London where it has minimally decreased.
  • The region with the greatest increase is the North West where the minimum need has increased from 34,678 to 35,827 homes per annum, an increase of 1.8% or 610 homes per annum.
  • In London, the minimum need has decreased by 2% from 87,992 to 86,248 homes per annum.

Impact on the Standard Method

The map below presents the standard method figures based on Pegasus Group’s initial analysis of the data. It shows the annual minimum local housing need based on the Government’s standard method calculation on the 22nd May 2025.

Clicking on each local authority on the map also presents the annual minimum local housing need as calculated in December 2024 when the new standard method was introduced.

Key points to note from the standard method calculations are:

  • There is now a minimum local housing need for 370,948 homes per annum across England.  This is a minimal increase of 540 homes per annum (0.1%) compared to the need identified in December 2024.
  • Preston (+7.1%), Staffordshire Moorlands (+6.2%) and Rushcliffe (+5.1%) are the only authorities to see an increase of more than 5%. This has been primarily driven by the significant worsening of the affordability of housing in these areas.
  • Kensington and Chelsea (-6.8%) and Tower Hamlets (-6.2%) are the only authorities to see a decrease of more than 5%. This arises primarily owing to the significant improvements to the affordability of housing in these areas although housing in Kensington and Chelsea remains less affordable than in any other authority by some distance.
  • In absolute terms, Manchester saw the largest increase in the minimum local housing need with an increase of 106 homes per annum (from 2,430 to 2,536) and Kensington and Chelsea saw the greater decrease of 349 homes per annum (from 5,107 to 4,757).

Commenting on the new ratios, Neil Tiley, Senior Director, said: “The new standard method was introduced not only to provide a better indication of the level of housing needed to address the longstanding and persistent shortfalls of housing over decades but also to provide a more stable and predictable measure of need at a local authority level. This has indeed proved to be the case, as the updated results are within 5% of the results which arose in December 2024 in all but five local authorities and within 2% in 209 of the 295 authorities across England. This consistency enables local authorities to have a predictable level of need which they can plan for accordingly.

Notwithstanding this, given the recent introduction of the new standard method, the number of homes delivered remains substantially below the minimum number needed. It will take time for local authorities to put in place plans that respond to the challenge, and for the resultant sites to be delivered, which underlines the importance of getting plans in place that meet the full minimum local housing needs sooner rather than later. In the absence of these plans, it will continue to fall largely to the development management process to respond to the pressing need for housing.”