Housing supply up by a quarter
The annual housing supply in England increased by 25 per cent from 2014-15, the latest Net Supply of Housing Report has revealed.
Today’s housing supply figures, released by the Department for Communities and Local Government (DCLG), will invoke a collective sigh of relief in the housing market, after it was shown that there were 170,690 net additional dwellings (new-build, conversions and additional homes) created in 2014, after five consecutive years of dwindling figures.
This has been primarily driven by over 155,000 new build housing completions: by far the highest figure seen in the past six years.
Head of lending at Mortgage Advice Bureau, Brian Murphy, commented on the figures:
“With the worst of the recession behind us and the UK economy showing steady growth, the number of new build completions has increased by almost a third since the dangerous lows of 2010-11.
“Robust growth in housing supply is very welcome as consumer demand – buoyed by record low mortgage rates – shows no signs of abating.
“However, the market is by no means out of the danger zone just yet. The number of housing completions is still far below the amount needed – net supply of dwellings remains 24% below the levels seen in 2007-8 – and we are seeing too many homebuyers chasing a single property.”
Across the UK, there is an ever-growing gap between supply and demand, which threatens to drive up house prices and derail affordability.
“The government must act on its promise to increase housing supply,” Murphy continued.
“[This is] Not only through additional policies like the Starter Homes Scheme, but also by ensuring net supply of housing continues to grow at a strong rate.”