New builds are being developed across the UK to fulfil the needs of the housing market. This includes providing more options for private housing, council housing or commercial developments like serviced apartments.
The figures for each sector gives an idea of the level of growth each is seeing and which one appears to be enjoying the biggest success in terms of new build figures and spending.
Private houses and flats
The number of new homes registered by the UK’s housebuilders and developers in the first three months of the year reached more than 37,500 – a 3% increase on the same period in 2018.
Savills Estate Agents reported that viewings and new applicants for new build homes grew by 35% and 31% respectively in Quarter 1 of 2019, compared with the same period in 2018.
There is a long-term plan in the government to increase the rate of new build homes across the UK to bring balance to the housing market.
Former Housing secretary James Brokenshire said:
“Builders have started construction on more homes than at any point in the past decade, marking real progress made towards hitting our ambition of 300,000 homes a year by the mid-2020s.”
“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.”
However, The Royal Institution of Chartered Surveyors believes that housebuilding levels have peaked.
The amount of money spent on building new homes in the social housing sector increased by nearly 11% at the end of 2018 while private housing output saw a drop of 6.8%.
London councils have been leading the way with regeneration projects and new builds for housing estates, building over 2,000 council homes in the last seven years.
A £1bn fund to London from central government has been granted to build 11,000 new council homes over the next four years.
New serviced apartments
Serviced apartments are progressing at a stronger pace than any other type of accommodation in the hospitality sector for business travel.
Over the past four years, the number of serviced apartments has increased by around 40%, from approximately 17,000 units in 2015 to 24,000 in 2019 in markets across the UK. The Rise in Popularity of Serviced Apartments.
Serviced apartments are billed as an alternative to hotels, mainly aimed at those in business who are visiting the area for a short stay and around 7,500 serviced apartments are expected to be built in the UK by 2022.
Developments like the £400m reboot of Dolphin Square in Pimlico will add more serviced apartments to its existing number of 124 so it would suggest they see a growing market for this type of residence.
Which is doing the best?
For all types of residences, there is a constant need for more new builds to be developed.
Private housing is seeing the most activity overall in order to try and balance the supply and demand of the property market.
Council estates are undergoing a series of regeneration projects to improve the standards of current housing and to increase available housing for the estate.
Serviced apartments are a fast-growing area of property which has seen the biggest growth in terms of interest for developers to go ahead with.
In terms of spending on developments, the figures suggest there is more optimism for council estates and serviced apartments over private property.
Cenkos analyst Cammack says:
“We’re likely to see a relative slowing in private sector starts and a relative quickening in the pace from institutions and housing associations, which will shift the dynamic in the sector.”
This information tells us that now is as good a time as ever to enter the property market. At Hunter Finance, our flexible funding options have helped first-time developers and experienced property companies to complete profitable new builds and developments.