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New build homes drive UK housing supply increase

UK housing supply soared in the year to the end of March driven by an increase in the number of new homes being built.

There were 241,130 net additional dwellings, up nine per cent on the previous period, with new build homes accounting for 213,660.

Change of use was the second biggest driver behind the spike in accommodation, creating 29,260 additional dwellings.

In total, 14,107 of the net additions through change of use were made using permitted development rights, meaning full planning permission is not required. Of those, 12,032 were former office buildings converted into residential accommodation.

There were also 5,220 new homes added by converting houses to flats and 940 other gains from caravans and boats

Vadim Toader, founder and chief executive of fintech firm Proportunity, said: “Britain’s failure to build enough homes for the past few decades is a key factor behind the affordability we face today and so today’s figures showing housebuilding is at a record high are welcome news.

“However, years of weak wage growth and a challenging savings environment have taken their toll and so many still need a helping hand to get on to the housing ladder”.

“The industry must build on this success, and cannot rest on its laurels,” Andrew Southern, chairman of property developer Southern Grove, added.

“The property market is crying out for more new homes, the demand is there and local authorities, particularly in the cities, need to be open to creative ways of encouraging more affordable schemes in high density areas.”

By Jessica Clark

Source: City AM

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New-build home registrations at 11-year high, says industry body

The number of new-build homes being registered jumped to an 11-year high in the third quarter of 2018, according to an industry body.

Some 43,578 new homes were registered across the UK between July and September – the highest total since the third quarter of 2007, according to the National House Building Council (NHBC).

The NHBC’s registration figures are taken from builders who are responsible for around 80% of homes constructed in the UK.

Builders are required to register a house with the NHBC, a warranty and insurance provider, before starting work, which means its figures represent homes to be built in the months ahead.

The number of homes being registered was also 15% higher than in the third quarter of 2017.

Rising new home registrations in the private and the affordable sector have helped push the figures up, the NHBC said.

London has seen a dramatic increase in registrations, up 141% to 6,007, compared with a lower-than-usual figure of 2,492 in the same period last year, its report said.

This is partly due to a number of large developments being registered by housing associations and by investors focused on the private rental sector, according to the NHBC.

It said Scotland, Yorkshire and Humberside and the South West of England are also seeing considerable growth in new-build registrations compared with 2017.

This week’s Budget saw further help for first-time buyers amid a package of measures aimed at boosting the housing market.

NHBC chief executive Steve Wood said: “The upturn in registrations over recent months is good news for the industry and shows that there remains a strong demand for high-quality new homes in many parts of the UK.

“The increase in London is welcome, although it has been boosted by a number of large-scale developments and has to be set against unusually low figures this time last year.

“On a broader front, the industry remains cautious in the short-run until the economic impact of Brexit is clearer.

“Attaining the Government’s target of 300,000 new homes by the middle of the next decade will require a real focus on innovation, particularly the use of modern methods of construction, and on building skills and capacity in the workforce onsite, topics many builders are actively grappling with.”

Here are the numbers of new-build homes registered across the UK between July and September, and the change compared with the third quarter of 2017 according to the NHBC:

– North East, 2,172, 5%
– North West, 4,280, minus 7%
– Yorkshire and Humberside, 2,917, 39%
– West Midlands, 3,138, minus 11%
– East Midlands, 3,080, minus 14%
– Eastern England, 3,814, minus 4%
– South West England, 4,604, 34%
– London, 6,007, 141%
– South East, 7,128, 7%
– Scotland, 3,681, 20%
– Wales, 1,476, minus 10%
– Northern Ireland and Isle of Man, 1,281, 71%

Source: Yahoo Finance UK