Builders are continuing to invest in land as they look to deliver further increases in housing supply. HBF/Glenigan’s latest Housing Pipeline report released earlier this year demonstrates.
The report shows that permission for 361,971 new homes was granted in the year 2018 to October underlining the industries intent to build even more houses in the years ahead.
Official figures released last month showed that net housing supply in England increased to 222,000 in the year to April up an unprecedented 78% in the past 5 years. The report highlights the commitment of the industry to go further and deliver on the challenge laid down by Government to supply 3000,000 a year.
Permissions are continuing to rise
The report also shows that the number of sites the permissions are being granted on is continuing to rise. The 361,000 permissions were on 21,000 different sites, the highest moving annual total since the series was started in 2006. This is very welcomed and suggests local authorities are spreading their housing need across more sites instead of relying on fewer large ones. This is something HBF pushed hard to be in force through the planning system as it enables more SME builders to play their part in addressing our housing shortage.
The announcement of an extension to ‘help to buy’ in October’s budget will provide further confidence for the industry as it looks to push these permissions through the planning system. Certainty of future demand is absolutely key for builders as they look to invest in these permissions and get them to the point where they are actually allowed to start building the homes.
Builders are also continuing to invest heavily in the people, supply chain and new technologies that will enable them to build out these permissions in the years ahead at a rate that will help achieve Government’s targets.
Concerns of course remain, as the impact that Brexit will have on the economy and the confidence of new home buyers, and in particular, on continued access to skilled foreign workers, as the industry continues to push Government for certainty.
Stewart Baseley, executive Chairman at HBF, said the figures clearly show the commitment of the industry to delivering further increases in housing supply.
“The industry has delivered unprecedented increases in housing supply over recent years and is continuing to invest heavily in the land and people needed to go further”, he said. “ The recent confirmation of an extension to the ‘help to buy’ scheme provides further certainty and confidence for builders in the future demand. This is enabling them to invest in more sites, their supply chains, and recruit and train more people boosting local economies across the country”.
“The industry continues to push Government for confirmation that it will have ongoing access to skilled labour from abroad post Brexit which will be key to its ability to build out these sites”.