The number of new housing developments being brought to market has fallen to its lowest level in more than nine years, according to new analysis from Rightmove, highlighting the scale of the challenge facing the government’s housebuilding ambitions.
The property portal found that the number of new build developments listed for sale has dropped to its lowest point since January 2017, despite the government’s pledge to deliver 1.5 million new homes over the course of this Parliament.
Rightmove said higher mortgage rates continue to create a difficult trading environment for housebuilders and estate agents, while the supply of affordable homes remains insufficient in many parts of the country.
Although the total number of homes for sale across the new build and second-hand markets has increased by 85% over the past four years, the portal said there remains a shortage of homes in the right locations and at price points buyers can afford.
Ahead of the Autumn Budget, Rightmove is calling on the government to introduce measures aimed at supporting housing delivery, including removing stamp duty for first-time buyers, increasing investment in affordable housing and providing targeted support to help more first-time buyers onto the property ladder.
Steve Mariner, group sales & marketing director at Barratt Redrow, said: “Government has made good progress reforming the planning system, helping unlock more land for development. However, increasing regulatory costs are holding new homes back, while low customer confidence, higher borrowing costs and wider economic uncertainty are all making it harder for first-time buyers to get onto the housing ladder.
“A new scheme to support first-time buyers, with developers contributing alongside government, would help people achieve their dream of homeownership, get the market moving and see more homes built and more economic growth. For the first time in decades there is no government support to help people in England buy their first home, right when it’s needed most.”
Alex Slater, Rightmove’s director of new homes, added: “First-time buyers underpin the whole housing market, but affordability and getting that first foot on the ladder is becoming more difficult. We need a set of reforms that go further, faster and work together, from stamp duty changes to more investment in affordable housing, to give this group a better chance of getting onto the ladder and keeping the market moving.”
