Only 4% of ‘affordable home’ purchases were for new-builds

My Home Move has called the Government’s focus on new-builds into question after figures show that most affordable property purchases were for traditional flats and terrace properties.

The conveyancer analysed Land Registry data from January to September this year and found that only 4% of ‘affordable’ homes bought in 2016, defined as those under £125,000, were new-build properties.

The counties of Durham, South Yorkshire and Merseyside saw the highest proportion of ‘affordable’ homes being sold and bought during the period, accounting for an average of one in two transactions.

In contrast, the southern counties of Surrey and Hertfordshire had the lowest number of below Stamp Duty transactions with 1.04% and 1.3% respectively, while Greater London saw just over 1,000 homes bought for less than £125,000, just 54 of which were new-build properties.

The figures in the table below make interesting reading.

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Doug Crawford, chief executive of My Home Move, said: “During last month’s Autumn Statement the Government renewed its pledge to build more homes across the UK, with a particular emphasis on 40,000 additional ‘affordable’ homes.

“Through our own research we know that two in three people believe affordable housing should cost less than £120,000.

“This begs the question – is the Government really capable of delivering on its promise, as only 4% of ‘affordable’ homes purchased this year were classified as new-builds.

“Looking at the numbers, the largest proportion of ‘affordable’ new homes have been built across Yorkshire, Greater Manchester and the West Midlands.

“However, for those struggling to get on the property ladder in Berkshire, Herefordshire, Surrey and London, the picture is fairly grim. Across the four regions only 1,544 properties were sold for less than £125,000, of which barely a handful, just 57, were newly built.”

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4 Comments

  1. PeeBee

    “Through our own research we know that two in three people believe affordable housing should cost less than £120,000.”

    Perhaps Mr Crawford should be concentrating on reality and not whim and wish?

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  2. 123430

    In London. £1m is considered affordable in most new builds. Therefore a new development of 1000 units 200 is reserved as affordable ie. for people who earn 330k pa. no wonder no one can buy them (slight exaggeration in price but you get the point).

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  3. Will

    Affordable housing A TERM CONCEIVED BY POLITICIANS to con the electorate.

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  4. AgentV

    Affordable housing…..but you can’t raise enough deposit or borrow enough to be able to buy….even though you are spending far more regularly each month on your rent than it would cost you on a mortgage to buy…rules are rules and ‘computer says no’.

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