New Myth-busting Report Paves the Way for UK Housebuilding Comeback
As the housing market continues to evolve, a new report from the Centre for Policy Studies has provided valuable insights for property developers in the United Kingdom.
"The Case for Housebuilding," received support from four former housing ministers, including Sajid Javid, Simon Clarke, Kit Malthouse and Brandon Lewis.
The report addresses a series of myths about the housing sector, which have contributed to a lack of support for new homes.
The first myth is that the UK does not have a housing supply problem.
The second is that increasing the supply would have little effect on making housing more affordable, as it is primarily driven by monetary factors.
The third myth is that there is enough brownfield land available, so there is no need for greenfield development.
The fourth myth is that building new houses is always unpopular.
The Numbers Don’t Lie – Fewer New Builds, Smaller Homes and Higher Prices
The report shows that the UK has not been building enough homes to keep pace with population growth.
In the 1960s, the UK built 3.6 million homes, while in the 2000s and 2010s, we built around 1.5 million homes per decade. Additionally, the size of new homes has decreased, and the UK now has the smallest homes in Europe. First Mars Bars and now houses – are we at risk of becoming a nation willing to accept paying more for less?
Since the 1970s, house prices have risen dramatically, especially in areas where supply and demand are most imbalanced.
Tellingly, price increases have been far lower in countries that have built more homes.
Rents have also increased as a share of income, and private renters are now spending 30% of their income on rent in recent years, and almost 40% in London, thereby making it even more difficult to save for a deposit.
What’s the Plan for Planning?
The report claims that arguments around housebuilding keeping pace with new household formation are flawed, as are suggestions that enough houses can be built by simply building on brownfield land or by building out existing planning permissions.
Cities like London and Bristol could only build 24% of the homes they need over the next 15 years on currently existing brownfield sites, while most rural areas have almost no brownfield land available.
The report concludes that politicians should not assume that new homes are unpopular and that building new homes will cause house prices to decrease. In fact, a majority of voters (81%) agree that the housing market is not working properly, and there is overwhelming support for a large number of new houses to be built. An argument that gains even more credibility when one considers the increasing importance of energy efficiency to homebuyers.
The report states that not building enough homes would be a disaster for the UK economy and society.
What Does This Mean for Housebuilders?
"The Case for Housebuilding" has important implications for new build developers in the UK. The evidence presented makes a strong case for increased building opportunities and removes the obstacles of opposition by demonstrating high public support for new builds, without having a detrimental impact on property values.
Additionally, the report emphasizes the importance of building new homes in the places where people want them, rather than just building on brownfield land. This means that new build developers have the opportunity to build new homes in areas where there is high demand, rather than being limited to brownfield sites.
And by highlighting the reliance on increasing housing supply for economic growth, new build developers have the opportunity to meet this demand and contribute to the UK’s economic rebuild.
How Can We Help?
At Classic Folios, we understand the importance of building new homes in the places where people want them, having worked with developers across the United Kingdom. We are dedicated to providing property developers with the resources and support they need to ensure smooth homebuying journeys, reduce fall-throughs and secure future sales from referrals through our unparalleled customer care solutions.
With an emphasis on increase housing supply, outsourcing things like content creation will be vital to ensure in-house resources can be most effectively deployed in the delivery and sale of new homes.
Contact us today to learn more about how we can help you achieve your new build development goals.