New House Registrations Increase By 18%
Developers Increase Number Of New Homes Built
According to data just released by the National House Builders Confederation the number of new homes being built increased by 18% between January and March 2015. The numbers will be welcomed by the construction industry who are keen for members to capitalise on the growing economy and the number of new homes being built.
The number is still well below the boom of 2007 but just over 40,000 new homes have been built in the first quarter of 2015. The number is also well short of the number of homes needed to keep up with demand which is estimated at 65,000 new homes every quarter.
House prices continue to rise
The market is still very buoyant and prices continue to rise. The market has been boosted by some of the recent announcements made by the Chancellor in the April Budget. The changes to stamp duty charges have boosted demand and the "Help To Buy" scheme is continuing to help buyers get a foot on the ladder. The government has certainly been giving incentives to buyers as they see a strong housing market key to a successful economy.
Whilst the market may have slowed down just prior to the election there seems to be renewed confidence in the market and it looks as though house prices are likely to increase again in the short term. Whilst the number of new homes being built is good news most local councils will benefit from this because most new developments will have to provide some affordable housing on these schemes.
Currently if a developer wants to build a scheme of houses over 14 units they are required to provide affordable homes within the site. for example if a developer builds 50 units they will have to build 40% of the site as affordable housing for the local authority.