New government figures published today (3 October) show the number of new build homes under construction has dwindled, putting further pressure on the housing crisis
According to the ministry of housing, communities and local government (MHCLG), the new build homes figures should be regarded as a leading indicator of overall housing supply.
However, the figures show that:
- New build home starts in England were estimated at 37,220 in the latest quarter (April-June 2019), a 2% decrease compared to the previous 3 months and an 8% decrease on the previous year;
- Annual new build dwelling starts totalled 160,640 in the year to June 2019, a 1% decrease compared with 2018.
- During the same period, completions totalled 173,660 an increase of 8% compared with last year – but still a long way behind the rate needed to meet the government target for new homes.
- Most local authority areas in London – where a lack of housing is most acute – showed a decrease in starts and completions of new builds between June 2018 and June 2019.
Commenting on the figures, Clive Docwra, managing director of McBains, said: “Today’s figures show the amount of new homes being started or completed are still nowhere near the number required to meet the government’s target of building 300,000 homes a year by the mid-2020s.
“Brexit uncertainty continues to bite, with many housebuilding projects on hold until the picture on the UK withdrawal from the EU becomes clearer, while the weak pound means the high cost of imported materials is holding back construction.
“Demand for housing is far outstripping supply, but today’s figures prove there is still no light at the end of the tunnel in terms of solving the housing crisis.”
Joseph Daniels, founder of Project Etopia, commented: “This is a second successive decline in house-building starts and unless there is a swift reversal in fortunes in the final six months of the year, this is going to translate into fewer completions in 2020.
“This serves as a wake-up call to the government which, despite setting grand housebuilding targets, now faces the prospect of watching the industry cut and run from those ambitions, leaving them in tatters.
“Housebuilders are showing signs of succumbing to the property slowdown, and it is evident that the industry has not done enough to plan for this.
“There is still enormous hunger out there for housing, valuations are still healthy by historic standards and there is plenty of buying power thanks to cheap borrowing and buyer incentive schemes. However, the industry does not seem capable of ridding itself of the self-defeating, cyclical pattern that has always haunted it.
“Housing policy in Britain is still failing and the people it is failing the most are those desperate to get onto the housing ladder who cannot afford to buy because there is not enough supply.”
