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Housebuilding rates failing to meet government targets

The number of new build homes started and completed continues to fall below government targets, according to new figures published by the Ministry of Housing, Communities and Local Government.

The report suggests the new build dwellings figures should be regarded as a leading indicator of the overall housing supply.

New builds slow to start

Annual new build dwelling starts totalled 157,550 in the year to September 2019, a 7 per cent decrease compared to the year to September 2018. During the same period, completions totalled 177,980, an increase of 9 per cent compared with last year.

On a quarterly basis, new build dwelling starts in England were estimated at 39,510 (seasonally adjusted) in the latest quarter, a 2 per cent increase compared to the previous 3 months and an 11 per cent increase on a year earlier. Completions were estimated at 46,000 (seasonally adjusted), a 2 per cent increase from the previous quarter and 11 per cent higher than a year ago.

“The government has set a target of delivering a million homes in the next five years, yet today’s figures show that the construction industry is way off meeting those rates on current trends.”

Clive Docwra

Managing Director, McBains

Housing association completions down by 14%

Private enterprise new build dwelling starts (seasonally adjusted) in the September quarter 2019 are up by 3 per cent on the previous quarter, and completions are up by 5 per cent. Starts by housing associations are 4 per cent lower compared to the last quarter, and completions down by 14 per cent.

Clive Docwra, Managing Director of construction consulting and design agency McBains, commented:

“Annual new build starts in the year to September 2019 saw a decrease of 7 per cent on the previous year, and while completions totalled close to 178,000, we need to be building more than 200,000 homes each year to meet the government’s ambitions.

“The government needs to set out how it intends to boost housebuilding and increase the supply of new homes needed to tackle the housing crisis, such as freeing up more land to build and cutting red tape on planning.”

 

Article written by Ella Tansley

Source: Twin FM

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What Turns Buyers Away From New Build Homes?

Although nine out of ten new build home buyers would purchase a new build again, a New Homes Survey by the HBF reveals that bad press and general misconceptions continue to tarnish the sector. Survey results suggest that the primary concern is build quality.

According to a recent survey by specialist insurer BLP Insurance, nearly one-quarter of people view low quality to be a big disadvantage of buying a new build over an older property. Those residing in the north of England, which accounted for 29% of survey respondents, were more apt to regard low construction quality as a major disadvantage compared to those in London and the Southeast (21%).

Other perceived disadvantages of new builds that respondents identified included:

  • Lack of character (26%)
  • Room sizes (24%)
  • Sale price (21%)

Respondents in the 16-24 age group expressed concerns about cost (32%) when purchasing a new build home while those over the age of 55% viewed lack of character (30%) as the principal disadvantage of buying a new build. They were less likely to regard cost as an important factor (18%).

The BLP Insurance survey also indicated that 29% of residents did not see any special advantage in buying a new build home. Those in the over-55 age group were particularly sceptical about the benefits. (41%)

BLP Insurance CEO Kim Vernau said that subpar build quality was a growing cause for concern in the British housing market. As developers struggle to deliver enough new homes to meet the high levels of demand, quality and practical design were being compromised.

As homebuyers become more conscious of the problems caused by the poor build quality, everyone involved in the construction of new homes will have to take a position of greater responsibility and dedication to ensuring ongoing quality in the build process. Otherwise, the number of new build home buyers cannot grow.

Source: CRL

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£1m new-build homes drive up Edinburgh house prices

Edinburgh has had a major boost in £1 million new builds and boasts the most seven-figure properties in Scotland, despite a fall in the number of millionaire homes across Scotland last year.

The average selling price of properties in some of Scotland’s most popular areas increased 35 per cent over the past five years, with Portobello the biggest climber in Edinburgh at 28.6 per cent.

Property agency Rettie & Co said Edinburgh is at the heart of the £1m new build market with a combination of conversion and refurbishment schemes in the New Town, complementing high value new builds across the city.

The sale of all penthouses and flats at a new development in Morningside has pushed Woodcroft up to be the second most expensive street in the city. And Rettie said the joint venture between Queensberry Properties and Telereal Trillium demonstrates the importance of the million pound market in Edinburgh and the Lothians.

The Scottish £1m plus market fell overall in 2017, with 159 such sales, a drop of 4 per cent on the 2016 total. But the capital bucked the trend, with Edinburgh and its hinterland accounting for around three-quarters of the country’s 2017 £1m-plus sales last year.

Dr John Boyle, director of research and strategy at Rettie & Co, said: “There have been some significant shifts in the £1m-plus market in Scotland in recent times.

£1m new-build homes drive up Edinburgh house prices A new development helped make Woodcroft one of Edinburgh’s most expensive streets.

Edinburgh has had a major boost in £1 million new builds and boasts the most seven-figure properties in Scotland, despite a fall in the number of millionaire homes across Scotland last year.

The average selling price of properties in some of Scotland’s most popular areas increased 35 per cent over the past five years, with Portobello the biggest climber in Edinburgh at 28.6 per cent.

Property agency Rettie & Co said Edinburgh is at the heart of the £1m new build market with a combination of conversion and refurbishment schemes in the New Town, complementing high value new builds across the city.

The sale of all penthouses and flats at a new development in Morningside has pushed Woodcroft up to be the second most expensive street in the city.

And Rettie said the joint venture between Queensberry Properties and Telereal Trillium demonstrates the importance of the million pound market in Edinburgh and the Lothians.

The Scottish £1m plus market fell overall in 2017, with 159 such sales, a drop of 4 per cent on the 2016 total. But the capital bucked the trend, with Edinburgh and its hinterland accounting for around three-quarters of the country’s 2017 £1m-plus sales last year.

Dr John Boyle, director of research and strategy at Rettie & Co, said: “There have been some significant shifts in the £1m-plus market in Scotland in recent times.

“There has been a concentration of such sales in Edinburgh and surrounding areas and new build sales are 
playing a much bigger role in this market, partly due to the lack of available stock elsewhere.

“The performance of this market is important in a Scottish context, even though it only accounts for 0.2 per cent of all Scottish house sales, it contributes around 7 per cent of Land and Buildings Transaction Tax revenues.”

As well as an increase at the upper end, the burgeoning market in Edinburgh’s Dalry, Gorgie and Slateford has seen a huge hike in prices of one-bedroom flats, up 28.5 per cent in a year to £144,052.

And showing speed really is of the essence for buyers keen for a slice of the Edinburgh property pie, the average time to sell in these areas has slashed from 92 days in 2013 to just 14 days.

ESPC’s business analyst Maria Botha-Lopez says: “Property prices in some areas of Edinburgh have risen fast over the last five years, and over the last couple of years in particular, the market has been in favour of the seller.

“Over the last three months, the percentage of properties sold within 14 days rose by 13.3 per cent year-on-year to 35.4 per cent, and 29.4 per cent of sales set a closing date, indicating that sellers are attracting a number of competing offers from buyers.”

Earlier this week, the Royal Institution of Chartered Surveyors (Rics) said the number of homes on estate agents’ books has dwindled to a new low.

Average property stock levels per branch on agents’ books fell to a new record low of just under 42, as new buyer inquiries, new instructions from sellers and newly-agreed sales continued to drift lower in February, its report said.

New buyer inquiries fell for the eleventh month in a row while sales trends have remained similar over the past six months.

Source: Scotsman