New homes: January stats are on the up

Statistics released by the industry body NHBC show that the number of new homes registered in January 2013 (10,112) is roughly one third higher than the number registered in January 2012 (7,831). However, 800 of the new properties registered are part of the Battersea Power Station redevelopment, which therefore accounts for about one third of the increase – indicating that the month’s increase is not proof of a national upturn in homebuilding. 

When added to the previous two months’ registrations, the January figures only show an 18% increase on the same quarter last year – with 24,999 homes registered during this quarter. The private sector delivered more of the homes in this quarter (18,061) than the public sector (6,938). Greater London was the top performing region, with 4,686 new registrations in the quarter (including the Battersea boost), closely followed by the South East (3,644) and the Eastern region (3,204). The lowest performing region was Merseyside, with just 465 new homes registered.

These figures show that UK housebuilding is still falling far short of meeting housing need. The last quarters figures show that enough new homes were built across the country to house everyone on Tower Hamlets’ official housing waiting list. At this rate of progress, it would take a decade to house everyone waiting in London – let alone the rest of the country, and presuming there was no increase in demand.

The Government is trying to increase the number of new homes being built, but its funding strategies have put the attempt on a rocky footing.  First, the Government has schemes to help first time buyers obtain mortgages: but with little employment security in the economy and with young families often saddled with debt from student loans, this is only of limited help in keeping house prices up and therefore encouraging private building. Second, social homes are now being let at a premium in order to finance the building of future social housing. It is not clear that tenants will be able to afford the higher rents and therefore fund the necessary building programme in this way.

We await further figures with interest!