New home building numbers have fallen
The number of new houses that have started to be constructed has fallen, according to the latest Government figures.
New build dwelling starts in England were estimated at 37,220 in the latest quarter, a 2 per cent drop compared to the previous three months and an 8 per cent decrease on a year earlier.
Completions of new homes built rose by 4 per cent increase compared the to previous quarter and 11 per cent over the year.
However, on an annual basis, fewer new build homes are starting to be built, which means the Government will not be on target to reach 300,000 new homes a year by 2025.
Jamie Johnson, CEO of FJP Investment, said: “Regardless of the positive spin the government might try and put on these new figures, they are still well, well short of the number required – in fact, it’s approximately half the number that’s needed if we are to address the housing crisis.
Paresh Raja, CEO, Market Financial Solutions, added: “Things are heading in the right direction, but too slowly. I think there is actually a bigger issue at play, too; according to data from Land Registry, on average new-builds costs 29% more than existing properties. If we are looking to solve the housing crisis by building more homes, then we must ensure new-builds are more affordable.”
“I strongly believe the government must become more creative in its attempt to improve housing supply. We must find ways to convert or renovate derelict properties, such as run-down houses and empty commercial premises, to get them back onto the market, while also looking at ways to convert and build-on existing properties.”