New build completions reach 200,000
It doesn’t need to be said that there’s still unprecedented demand for new homes across the country. And that demand is greater in some areas than others. However, there is some good news to share in that new build home completions this year saw figures at their highest in a very long time. That said, they still fall short of the government’s target for delivering new homes.
Let’s find out more…
What are the numbers?
A total of 241,130 net additional dwellings were completed in the year to March 2019; a record number of homes and 9% more than the year previously. This level of output is now higher than when it was last at its peak, before the financial crash in 2008. Comparing these figures to performance over the last six years, housing supply has almost doubled. The year 2012/13 saw a meagre 124,000 new homes completed, so although today’s figures still don’t meet the Government’s target of 300,000, progress has come a long way. In the past five years, over a million houses have been added to the nationwide stock.
Local economies
Outside of London, the region seeing the most significant growth in new housing was the North West at 17%. This region much like many others are too, is crying out for more new homes – it’s clear the demand is there. There’s also the positive impact that new homes can bring to a region financially. As new homes and developments take shape up and down the country, we are seeing a boost to local economies. There’s greater investment in the regions, which leads to more jobs and improvements in infrastructure.
But there’s still a need to support future growth in these regions. Not just to make sure there’s enough land coming through in the right areas to build on or redevelop, but also to support those working in the construction industry. From SMEs to specialist providers, it’s vital the supply base is able to continue to grow.
Creating a sustainable future
Of the 214,130 new homes that were completed, 213,660 were new build homes. Second to that came new dwellings via change of use, which accounted for 29,260. And thereafter there were 5,220 new homes by way of house conversions to flats and just under 1,000 through caravans or boats. The lack of new homes over the years has led to the affordability issues in the property market today. As buyers compete to buy the homes they want, prices have been forced up.
These latest figures showing a record number of new homes being built are very good news for all concerned. Not just those working in the sector, but for the regions lacking housing supply and of course for the prospective buyers themselves. It’s now important to continue this momentum and bring affordable options to those high-density regions. It’s been a tough ten years for savers; weak wage growth and low interest rates have taken their toll. Despite an increase in housing stock, there will still be a need to support many onto the housing ladder. But at least we’re heading in the right direction with the numbers of new home completions.
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