Home building at second highest level in a decade
Despite a bitterly cold winter, a total of 154,698 new homes were registered in the last financial year according to the National House Building Council.
The long winter in Q1 2018 saw home building levels drop by 14% meaning the number of properties built was 2% lower than the 12 months previous, but still the second highest level in the last decade in the UK.
And optimism in the property market is strong, according to the NHBC, with chief executive Steve Wood noting that ‘business confidence in both the private and affordable sectors remains high with clear routes to continued growth in 2018’.
Why did building levels drop compared to 2016/17?
As noted above, the primary source of blame for the slow-down was bad weather. Some reports from site and house builders suggest nearly a month was lost in the first part of the year.
However, some larger issues including skills shortage and Brexit-caution have also been noted as to why a surge in property building compared to the last financial year has yet to materialise.
However, the long-term trend on new home building is looking bright.
In fact, six out of 12 UK regions saw increases in the number of new properties registered, with the North West, East Midlands and Wales benefiting the most with increases of 21%, 12% and 11% respectively.
However, further South there’s a different picture as registrations dropped 23% in London as well as 15% in the South West overall.