Govt figures show 21% rise in number of new homes being built | Mortgage Strategy

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The number of dwellings where building work started on site was 51,730 between 1 April and 30 June this year, according to the latest figures from the Department for Levelling Up, Housing & Communities.

The latest figure represents a 21% increase compared to the previous quarter and a 15% increase compared to the same quarter in 2021. 

The data also found that 44,940 dwellings were completed between April and June, a 3% rise compared to the previous quarter and up 6% compared to the same period last year.

Completions are 7% below their 2007 Q1 peak and are 180% above their 2020 Q2 trough.

In the year to 30 June 2022, new build dwelling starts in England were estimated to be 180,820, a 5% increase compared to 30 June 2021.

New build dwelling completions in England were estimated to be 173,530, a 5% decrease compared to 30 June 2021.

In total there were 62,910 energy performance certificates (EPCs) lodged for new build dwellings in the 13 weeks to the week commencing 5 September this year, a 5% increase from the 13 weeks to the week commencing 6 September last year. 

In the year ending June 2022, 243,200 new dwelling EPCs were lodged, which represents a 4% decrease when compared to last year.

UK Moneyman director Malcolm Davidson says: “One major worry is that our new prime minister seems against the very idea of housebuilding targets. Whatever your political persuasion, though, our population is growing exponentially but housebuilding hasn’t kept up and we have seen property prices rise in the region of 20% since Covid alone. This is simply not sustainable if we want to continue to be a nation of homeowners.”

“What we need is a clear vision and plan, utilising all available new technologies to enable the UK to embark upon a long period of building the homes we desperately need, including re-purposing buildings in our crumbling city centres.”

Peak Money managing director Rhys Schofield adds: “If you cut through the numbers that look big on paper, the UK needs to build 340,000 new homes a year until 2031. The government’s own target is 300,000 a year.”

“These latest numbers all fall well short, meaning that house prices can only be forced in one direction. With the lack of urgency around housebuilding, having a place to call your home is becoming increasingly out of reach for many people.”

Last week, new prime minister Liz Truss selected Simon Clarke as the UK’s latest housing secretary, the fourth person to take on the role this year.

Earlier this year in June, former housing secretary Michael Gove said since the record high of 244,000 completions pre-pandemic there has been “a number of economic headwinds which will make life more difficult” to reach the target of 300,000.

Speaking on the target, Gove said the target is still in place “but there are a number of factors that are going to make it and have made it more difficult”.

He highlighted the country’s “significant housing challenges” such as a historic lack of supply compared to the level of population growth.


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