New government data has revealed the number of housing starts rose again last year, pushing figures to the highest level seen since 2007
There is good news for the housing sector after new government data revealed the number of housing starts saw growth last year. The figures reached a nine-year high. However, as welcome as this news is it does not detract from the difficulties the government is having trying to meet its housing aims.
Housing remains a major focus for the government and the target to build a million new properties by the end of this parliament is undoubtedly one that has been in the forefront of the Conservatives term in office. Rising house prices and a shortage of housing has heightened the issue of ‘generation rent’, with many millennials facing the prospect of never becoming homeowners. Getting Britain building has been a mantra the government has been keen to follow, despite the fact it now seems unlikely housebuilding targets will be met in the timeframe promised.
However, the figures at least suggest housebuilding still remains a key objective for the government, with some 153,370 new starts recorded in the year to December. This was a five per cent increase on the previous year.
Furthermore, over 140,500 new homes completed in the same time period. It is clear from the data first time buyers are still in the game, despite perceived difficulties facing this group. Figures from the Council of Mortgage Lenders revealed 338,900 loans were granted to first time buyers—an eight per cent rise—which is good news for a government intent on creating the next generation of homeowners.
More still to do
Speaking about the figures, Housing and Planning Minister Gavin Barwell said the data was welcome but added there was still more to be done to ensure homes were available and affordable.
“Our housing white paper sets out an ambitious set of proposals to deliver more land, speed up build out, diversify the housing market, and support people who need help now,” he added.
The government has been under increasing pressure to tackle the housing crisis. Earlier this month, plans to address the issue of affordable housing was laid out in a White Paper. This document included measures to ‘fix the broken housing market’. The aims included:
- Getting the right homes built in the right places
- Speeding up housebuilding
- Diversifying the market
With housing starts in Islington and Manchester reaching a whopping annual increase of 296 and 323 per cent, respectively, it certainly seems as if things are moving in the right direction.
Housebuilding problems
While the nation is undoubtedly building, this has not come without its own issues. The housebuilding sector has been dogged by problems over the past few months.
Recently, regulator the NHBC came under fire for paying developers for new homes, calling into question their objectivity as the organisation supplies warranties on new builds. A report from the Guardian also suggested the organisation was silencing homebuyers, forcing some to sign non-disclosures on poorly built properties.
In fact, the issue of poor quality builds is one that keeps cropping up in the media. Most recently, Bovis Homes was in the spotlight after the firm revealed it would pay out £7m in compensation to fix quality issues on some of its properties. As a result the housebuilder said it was forced to readjust its profit margin and said going forward it would focus on building less homes at higher standards.
Building more is great news, but not at the expense of quality.
