Housebuilding target suffers blow with new figures
Plans by the Government to build 1.5million new homes have taken another blow with official figures revealing a new-build fall.
Latest Office for National Statistics data reveals a drop in the total in three consecutive months.
Total private sector residential new-build totals in Britain were 3,309 in May, dropping to 3,293 in June, 3,163 in July and then down to 3,103 in August.
Mixed conditions
Terry Woodley, MD of Development Finance at Shawbrook Bank (pictured), says: “A fall in construction output shows that conditions remain mixed for the sector.
“For developers weighing up their next project, build costs, borrowing costs and buyer demand all need to stack up. Predictable planning times are also crucial, helping them manage costs and commit to a start date.
“Your First Home could help support buyer demand, while the forthcoming Budget offers an opportunity to complement that with practical support for smaller developers and measures to speed up delivery.”
For developers weighing up their next project, build costs, borrowing costs and buyer demand all need to stack up.”
Earlier this month, Taylor Wimpey revealed it had stopped building new homes in London after warning the viability of new schemes had “evaporated”.
The housebuilder said the costs of getting new development going were now prohibitively expensive.
Then, industry body Real Estate:Scotland warned that the viability of new housing in Scotland was at “breaking point”.
In June, Savills said the 1.5million target by 2029 was set to be missed by more than 660,000.
Viable schemes
Neil Leitch, Managing Director of Development Finance, Hampshire Trust Bank, says: “Encouraging more people to buy new-build homes is one thing, but developers also need to be in a position to respond to that demand.
“That requires a consistent pipeline of viable schemes and sufficient confidence for developers to commit capital and start building.”
The post Housebuilding target suffers blow with new figures appeared first on The Negotiator.
Author: Gemma
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