More new homes being built than at any time in the last decade
The number of new homes that began being built last year was 12% higher to September 2018 on both a quarterly and annual basis according to the latest figures published by the Ministry of Housing, Communities and Local Government.
Split between the private sector and housing association builds, figures are up 14% and 9% respectively. Just under 45,000 new builds began, whilst over 41,000 homes were completed in the quarter.
The figures mean that the number of new UK homes being built is at the highest level for over a decade.
However, the growth in home building still sits well below government home building targets of 300,000 a year by the middle of the next decade.
Housing Secretary James Brokenshire said of the results that: “These figures show further encouraging progress towards our commitment to deliver a housing market that works for everyone while boosting the supply of new homes across the country.”
Help to Buy helping boost affordability, demand and ROI for house builders
First-time buyers are helping spur on the housing market with the aid of Help to Buy boosting affordability and demand from this group, whilst the extension of the Help to Buy scheme from the government until 2023 has given new house builders confidence that demand will remain.
For some home builders, nearly half of all completions on newly built properties are via a Help to Buy purchasing method, enabling more valuable homes to be built whilst maintaining affordability for would-be buyers. Pre-tax profits in some instances, as a result, are forecast to sit around 4% higher than initial estimates.
And that’s following figures from Halifax this month that show property prices grew 2.2% in December despite the general seasonal trend and even sentiment that suggested price cutting.