>Is Britain running out of room for cemeteries?

Yes, I believe it is, although the vast majority of people, these days are cremated.

In my old Yorkshire village the Church (of England) Commissioners were trying to buy land to extend the over-crowded church graveyard. The plans were opposed by neighbours of the church, who said that they did not feel that they could enjoy barbecues in their garden if they felt that there would be the possibility of a funeral appearing in their direct view. I understand that in some large cemeteries, steps are being taken to dig deeper and make a bit more room.

Although the worst is to come - isn't these some population growth statistic that says that there are now more people alive today ... oh no, just looked it up, another urban legend! http://www.snopes.com/errata/dead.htm