There has been a 21% increase in the number of new homes being built across the UK from a year ago, according to the latest figures from NHBC.
13,527 new homes were created in the last year up from 11,218. This increase continues the positive trend of more and more new homes being built over the previous few years with the number of new homes increasing every year since 2012-13.
A breakdown of the figures shows that 9,972 were private sector properties while 3,555 were in the affordable and rental sector so new homes are being built to cater for different incomes to provide more options to buy or rent a property.
In all, 7 out of 12 regions saw an increase in new home building. New builds in London were up 61% on the previous year.
New houses bring more balance to the housing market
The UK House Price Index provides an insight into house price growth across different areas of the UK and can help to explain how these areas were affected by the number of new homes being built.
The south of England has seen the newest housing developments which reflect the stalling and falling of house prices in the area.
London has long had a huge demand for houses with a small supply raising house prices steeply over the last ten years. The huge increase of new houses around London and the South has increased the supply, lowering the demand and reducing house price growth in the process.
The rise of house prices in London over the years had drawn people to look elsewhere but there is still enough interest that London needs to keep building new homes.
The rest of the UK has had to respond by building new homes too to match the increasing demand which is reflected by rising house prices across the UK. That would explain why the figures for the Midlands and North of England are mixed.
The balance of creating new homes to match demand but keep demand high enough to keep house prices up has seen a mixture of areas benefiting from new homes with healthy house price growth while others have seen house price growth coincide with lower levels of new build homes being created.
For example, the East Midlands had the greatest house price rise of 2.9% while the number of new homes declined but Wales and Scotland go against the trend by enjoying house price growth and new home build growth at the same time.
|NHBC – UK Registrations by Region|
|England – Regions||Feb 19 – April 19||Feb 18 – April 18|
|NORTHWEST & MERSEYSIDE||4,710||4,403|
|YORKSHIRE & HUMBERSIDE||2,518||2,571|
|NORTHERN IRELAND & ISLE OF MAN||910||922|
Commenting on the new figures, NHBC Chief Executive Steve Wood said:
“It is great to see another strong month for new home registrations. To date, there is little evidence that Brexit uncertainties are denting developer confidence, whilst the continued flow of inward investment into the private rental sector is another good sign of resilience.”
With current government plans, it seems that the UK will continue to build new homes year on year to narrow the gap between the number of available homes and those seeking to get on the property market.