Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.
Bungalow Construction at Record Low, Raising Concerns for Elderly Housing
New-build bungalows now account for only 1-2% of all completed new homes in the UK, according to figures from the National House Building Council (NHBC). This marks a significant decline from 11% in 1990, with just 386 bungalows registered out of 26,959 new homes in the first quarter of 2026.
The reduction in bungalow construction has placed the property type at the centre of a national debate about suitable housing for the elderly. Despite ongoing demand, the supply of new bungalows continues to fall, with industry figures pointing to a lack of long-term strategic housing policy as a key factor.
Developers and Policy Constraints
Developers are building fewer bungalows due to the higher land use required for single-storey homes compared to multi-storey developments. NHBC corporate strategy director Daniel Pearce stated that builders are focusing on three- and four-bedroom homes to maintain scheme viability and meet areas of greatest demand from homebuyers.
Paula Higgins, chief executive of the HomeOwners Alliance, noted that bungalows are less attractive to developers because they use more land for fewer homes, and the planning system tends to favour higher-density development. This allows housebuilders to deliver more units and potentially more profit by building upwards.
Neil Jefferson, chief executive of the Home Builders Federation, explained that national and local planning policy generally promotes higher-density housing, making it less viable to build bungalows. He added that bungalows use more land per room than houses or flats, but land prices and policy costs remain the same, making single-storey homes more difficult to deliver as government requirements increase.
An unnamed developer executive cited the cost of taxes and regulatory requirements as making bungalow construction “totally unviable” on most sites. Developers must also meet obligations such as affordable housing, infrastructure contributions, biodiversity targets, car charger installations, and upcoming green technology standards.
The ongoing decline in bungalow construction highlights a shortage of housing suitable for older people, with many living in homes that may not support them as they age.
Source: Mortgage Strategy