Nearly one million properties available at sub-market rent prices will be needed by 2021 if shortfalls between demand and supply are to be met, new research has revealed in 24 dash

Nearly 150,000 homes are needed to meet demand from under-25s alone, including 30,000 in London, where more than 185,000 properties are needed in total to cope with the shortfall.

The research – carried out by the University of Cambridge for homeless charity Centrepoint – is the first to solely examine the number of units needed below market rents.

The research also highlighted the growing shortfall in homelessness provision for young people.

Hundreds more units of supported accommodation – such as hostels – will be required in London by 2021 to house young people initially after they become homeless. This is partly due to the creation of bottlenecks, where young people cannot move out of hostels and into independent accommodation.

The report says that the growing problem can be solved by building more homes in the private and social sectors, and by making better use of existing stock, for example by increasing housing benefit rates so that more private rented properties become affordable, and the increased use of social lettings agencies and rent deposit schemes.

Andrea Ruiz, 18, has lived in a Centrepoint hostel for the past two years and now feels ready to live independently. However, she is struggling to move out because cuts to housing benefit have left much of the private rented sector out of reach, reluctance from landlords to rent to those on benefits and a lack of social housing.

Andrea said: “Living at Centrepoint has given me the boost that I actually needed to grow up as a person and learn what it’s like to live independently, having to depend on no one but myself.

“There are hostels all over London filled with individuals trying to move on, but due to the lack of housing we are holding back those who need to be moved into a hostel immediately.”

Centrepoint chief executive Seyi Obakin said: “A combination of benefit changes, a shortage of affordable homes and an increasing anxiety among landlords to let to young people on housing benefit has created a crisis situation.

“While it’s vital that more affordable homes are built, there are also other ways of tackling the problem which don’t come with a huge price tag.

“Local authorities must look at using powers they already have to tackle empty homes and engage further with the private sector, and nationally, Government has to review its cuts to housing benefit rates, which has left private rented properties out of reach in many areas of the country.”

The need for improved homelessness prevention work to reduce the demand for supported housing units is also cited in the report.

Anna Clarke from the University of Cambridge said: “Previous work has looked at the scale of youth homelessness, but this is the first major report to estimate the shortages of homeless accommodation and sub-market housing facing young people across the country.

“Rather than focusing solely on requirements for new building, the report aims to help policymakers take a wider view of solutions to our housing crisis – whether through greater provision of private rented access schemes, reviewing housing benefit levels or making better use of existing housing stock.

“Thousands of young people are struggling to find the accommodation they need and, without action, the shortfall between supply and need is likely to rise significantly.”