Lloyds Banking Group will warn that 60,000 new homes will need to be built every year in order to alleviate Britain's severe housing shortage.

In a speech later today (21 October) Lloyds' CEO Antonio Horta-Osorio will tell the markets that the bank will also put forward £50m (€63.2m, $80.7m) to help smaller house builders create homes in the UK.

"There is no silver bullet to increasing housing supply. It will take coordinated effort across a range of policy measures, sustained over a decade or more. This is a generational challenge," Horta-Osorio will say in a speech.

The average UK house price in August 2014 was at £274,000, according to the Office for National Statistics.

This equates to the average property price of £285,000 in England, £172,000 in Wales, £143,000 in Northern Ireland and £200,000 in Scotland.

The shortage of housing in the UK has been largely to blame for the soaring cost of property across the nation.

According to the Confederation of British Industry (CBI), 240,000 new homes need to be built per year to sate current levels of demand but over 200,000 homes have been delivered in only four out of the last 14 years.

In 2010, fewer houses were built than in any year since the Second World War.

The chronic shortage of supply and increasing demand has meant home prices, on average, have rocketed by 56% nationally since 2004, with a 90% increase in London.