The number of privately built new homes in 2020 will be lower than in the years following the global financial crisis, according to a report from Knight Frank.

The estate agent group’s study found that the number of homes privately delivered nationally this year is expected to drop by 56,000 or 35 per cent to 104,000.

In London, new housing is set to hit its lowest point since 2014 the report finds, with 8,000 fewer homes forecasted to be built compared to the five year private housing delivery average, which saw 14,405 completions.

Knight Frank’s review of pipeline data suggests that (as of 17 April) work had been suspended on residential schemes capable of delivering nearly 250,000 new homes across the UK, though some of these will be on sites at various stages of completion, and on projects due to be delivered over a multi-year timeframe.

Knight Frank head of residential development Justin Gaze says: “Faced with supply chain challenges and a national material shortage, developers are under increasing pressure to adhere to tight social distancing controls, while also coping with an ever-dwindling availability of skilled workers. This has cast a dark cloud over the capacity for housebuilders to deliver at scale and speed.

Knight Frank says last week marked the start of some housebuilders setting out strategies for a phased return to building but it will not be “simply a case of flicking a switch back on.”

Gaze says: “Now is the time for the government to intervene and support the private sector in getting building again. There needs to be a pragmatic approach. Extending Help to Buy and relaxing planning regulations to give developers greater flexibility on Section 106 and Community Infrastructure Levy payments would be greatly welcomed.

“Introducing a stamp duty holiday and streamlining the conveyancing process would also be a major stimulus. These measures would no doubt act as a real driver for the wider UK economy; helping to create jobs, new housing and ultimately receipts for the treasury via increased liquidation in the market.”

Indeed, even under the assumption that housebuilders recommence construction in early to mid-May, getting back up to speed will take time. There are a myriad of issues related to the supply chain, for example, with question marks over the availability of building materials, as well as delivery, distribution and labour.