Govt Falling Behind New Build Target Of 300,000 Per Year

Burflex House, Clay Street, Hull, East Yorkshire, HU8 8HA E. info@burflex.co.uk

Burflex House, Clay Street, Hull, East Yorkshire, HU8 8HA E. info@burflex.co.uk

Govt Falling Behind New Build Target Of 300,000 Per Year

Govt Falling Behind New Build Target Of 300,000 Per Year

 

The government needs to hire more scaffolders in Hull if it wants to meet its new housing building targets, as it is currently falling behind its aims.

Ministry of Housing, Communities & Local Government released its latest report entitled “Housing supply; net additional dwellings, England: 2017-18”, which revealed annual housing supply in England saw an increase of 222,190 properties during the year.

This is a rise of two per cent from 2016-17, and is the result of 195,290 new builds; 29,720 property gains due to a change between none-domestic and residential use; 4,550 conversions of houses and flats; and 680 other gains, as well as being offset by more than 8,000 demolitions.

While it is positive news that the number of extra houses coming on to the market is still increasing, the rise is not as great as the previous year’s when it reached 15 per cent, growing from 189,650 additional dwellings in 2015-16 to 217,350 the following year.

However, the last time the figure was as high as it was in 2017-18 was ten years before when it reached 223,530 at the peak of the property sector. After this, it fell by 18 and 21 per cent for the next two consecutive years when the housing market crashed.

It is clear the government is hoping to make up for the hard times the industry has faced over the last decade, and is trying to build as many properties as it can to meet demands of buyers.

Indeed, the number of net additional dwellings has increased by 78 per cent over the last five years, with the government attempting to provide affordable homes for those who want to get on the property ladder.

By increasing the supply of dwellings in the UK, the value of houses declines, making them cheaper for first-time buyers (FTBs) to afford.

In fact, this is why Russell Galley, managing director of Halifax, believes house prices have been able to grow – because there is a lack of new properties coming on to the market.

“House prices continue to be supported by the fact that the supply of new homes and existing properties available for sale remains low,” Mr Galley stated, following the release of the latest Halifax House Price Index.

This report revealed property values had grown by 1.5 per cent between October 2017 and 2018, which, despite being the lowest rate of annual growth for five years, still represents an upwards trajectory.

If the government were to build more properties, values would decline and make it easier for FTBs to afford to become homeowners.

This is the intention behind its target of building 300,000 new homes a year by the mid-2020s, which it recently stated it will do by “speed[ing] up the planning system as well as make better use of land and vacant buildings”.

At the moment, the government is falling well behind on its targets. While there might have been 222,190 additional dwellings last year, there were only 195,290 new homes built. Not only is this more than 100,000 less than its targets, but it represents an addition of just 11,720 additional new builds home compared with the year before.

Another way the government is trying to help FTBs is by abolishing stamp duty for those purchasing their first home worth less than £500,000 – a move it introduced in its Autumn Budget 2017.