Acceleration for the housing market as house building rises 6%
A flurry of recent research on house building suggests a surge in activity as work starts on around 29,500 new build homes in the second quarter of 2013.
Statistics from the Department for Communities and Local Government revealed a 6% rise when compared with the first quarter of 2013, and a rise of one third when compared with the same period in 2012.
The introduction of government-led housing schemes such as Help to Buy and New Buy, combined with less expensive mortgage rates, has arguably prompted a surge in the ability to create new housing. In the first four months of the Help to Buy initiative going live, over 10,000 reservations were made for new homes. By using this scheme, both first-time buyers and home movers are able to secure a home with just a 5% deposit.
Just less than 107,000 homes have been built over the past twelve months. However, housing charity Shelter believes that there is still cause for concern as despite an increase in building, there continues to be a significant deficit between the number of new builds and the amount of housing required.
Shelter’s director of communications, Kay Boycott, said: “While the government may trumpet these figures as a growth story, what they really show is that we are still building less than half of the 25,000 homes we need each year to meet demand.
Unless we see radical action from the Government to tackle our chronic shortage of homes, house prices and rents will quickly rise even further, out of reach for millions of people across the country struggling to find a stable home of their own.”
Communities minister Brandon Lewis’ comments painted a realistic picture of the housing situation. He said: “We’ve already delivered over 330,000 new homes over the past 3 years, and 150,000 affordable homes. There is more to do, but [recent] figures reinforce the momentum towards getting Britain building again.”
With further figures from the RICS reporting the fastest rising house prices since 2006, combined with the highest first-time buyer levels since 2007, there is plenty of evidence to suggest that the market is definitely improving.
Julie is a law graduate who qualified with Price Waterhouse in 1994. Julie joined Smith & Williamson in 1997 and became a partner in 2001. With Mike Stevenson, Julie set up Middleton Partners offices in Salisbury and Southampton, both of which are now part of Begbies Traynor.
Julie is a member of the Insolvency Practitioners Association and the None Administrative Receivers Association and is a Fellow of The Association of Business Recovery Professionals. Julie deals with all aspects of Corporate Recovery and turnaround work and takes all form of personal insolvency appointments.