Boost in new housing supply, but has there been a fair distribution?

Boost in new housing supply, but has there been a fair distribution?

The Department for Communities and Local Government have released figures showing the housing supply within England has seen the highest surge level within the past 12 years. In the past year alone, the number of new homes produced in England has increased by an incredible 10%.

Housing is at the forefront of long term plans set out by the government. This latest report demonstrates the grand scale of this project, with over 530,000 homes have been delivered since 2010.

Supply levels of residential property are currently at their highest since 2010, with the majority of homes delivered being brand new developments. The government’s Net supply of housing 2013-14 report reveals there has been 136,610 new homes produced within that year, which is broken-down into the following categories:

  • 130,340 are on new plots.
  • 4,470 are homes produced through conversions.
  • 12,520 are homes produced through change of use of a property.
  • 1,330 are homes created through other methods.

That said, the figures also include a loss of 12,060 residential properties through demolition.

The boost in plot sales is said to be down to new measures brought in by the government. These could include:

  • Changes to the planning system resulting in 230,000 permissions granted for new homes.
  • £19.5 billion investments into affordable housing programmes resulting in over 200,000 affordable homes being produced since 2010.
  • Schemes such as Help to Buy, which in itself has helped over 54,000 households onto the property ladder, have resulted in more properties being built following increased demand.

Looking at these latest figures, should this be the time for conveyancing firms to expand their residential new build departments? Is this something you’ve already planned for your business?

The government are also said to have successfully managed the inherited deficit, and have been able to keep interest rates at a record low and mortgages more affordable. As a result, the number of first time buyers is now the highest it’s been since 2007 and repossessions are at a record low.

Further reports within the industry are showing the number of repossessions is estimated to fall further within the next financial year.

Even though housing figures are certainly positive, the spread of housing supply is not evenly distributed across the country, according to the report. There is an obvious concentration in large areas across the South West as well as the Midlands. The lowest supply levels are shown to be across the North and South East of the country.

This raises the question – is the focus being divided fairly, or are some areas being favoured over others? Have you seen a noticeable change in conveyancing service demand within the last year, or has the housing supply in your area diminished?

Georgia Owen

Georgia is the Content Executive and will be your primary contact when submitting your latest news. While studying for an LLB at the University of Liverpool, Georgia gained experience working within retail, as well as social media management. She later went on to work for a local newspaper, before starting at Today’s Conveyancer.

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