New property supply has hit a 30-year high.
Official data for the period April 1 2018 to March 31 2019 show there were 241,130 net additions to housing stock, up 8.5% annually to a 30-year high.
Of these, 213,660 came from new-build home completions – up 9.4% annually to the highest level since the 1980s.
The rest of the supply came through 29,260 gains from change of use between non-domestic and residential, 5,220 from conversions between houses and flats and 940 other gains (caravans, house boats etc).
This was offset by 7,940 demolitions.
Commenting on the data, Stewart Baseley, executive chairman of the Home Builders Federation, said: “The numbers show the huge progress made by the industry as we look to meet the country’s housing need.
“Alongside much needed homes, the increases are boosting local economies up and down the country, creating tens of thousands of new jobs and delivering much needed investment in infrastructure.
“We need politicians to continue to work with us and develop policies that enable further increases to be delivered.
“We need to see policies that ensure buyers can buy and that enough land comes forward in the right places quickly and efficiently.
“We also need to see more support for small- and medium-sized builders and specialist providers to ensure the supply base continues to grow.
“The industry is absolutely committed to delivering the high quality, environmentally friendly homes that people across the country’s communities need.”
Builders of new homes are one of the catalyst for the housing market being unaffordable considering an average 3 bed house costs £50k to build.
The pound in your pocket was a powerful thing in 1950’s bought you 16 pints of beer, or 15 portions of fish and chips, or 39 large loaves of bread or enough stamps to send 96 letters. The average home cost just under £2,000 and combined salaries per couple were £800 per month.
Today you would get third a pint, quarter portion, a loaf and one first class stamp. The average new build costs £230,000 and average combined couples salary £35,000.
Doesn’t’ take much mathematics to see why a mortgage 3 times income was affordable until the builders hiked everything at the turn of the millennium year on year, dragging the re-sell market up with it.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
“Builders of new homes are one of the catalyst for the housing market being unaffordable considering an average 3 bed house costs £50k to build.”
We are entering uncharted waters here – but I can’t agree with you on that £50k figure, Woodentop.
Care to share where that figure come from?
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Unchartered waters … actually there is guide price used by builders and very secretive. They don’t want you to know how they work out their quantities costing’s …. wonder why! We are of course using an average UK property so regions will vary but the average for a 3 bed semi is £750 per sq meter and London and South East £1,750 per sq meter. A brick, piece of timber or slate is pretty much universal price anywhere in the UK. Land is another matter!
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Hi Woodentop
I meant ‘uncharted waters’ because you and I don’t disagree on pretty much anything, mon ami!
I’m pretty clued up when it comes to new build costs – but the last development I had to do prelim costings for up was based on £90 per foot, and that was before the CSH malarkey was implemented, which threatened to catapult build costs by 20% and more.
Your £50k based upon £750 per metre build would get you a two bedder at best – but I’m still of the opinion that even the purchasing power of the big builders can’t peg the costs that low. I would reckon that a ‘traditional’ build, 80sq.m. (860sf.ft.), semi today costs somewhere not too far South of £90k to build from footing to ridge and all points between. And that doesn’t include land… planning… compliance… cost of sales…
…or profit. Which, according to the recent results of a few of the big firms, currently runs at around 22% gross – nice to have today but which will nosedive with any change in the market.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
The pound in your pocket… in 1950’s bought you… 15 portions of fish and chips…
The average home cost just under £2,000″
Blimey. Cheap as… isn’t the word!
Okay – based upon today’s takeaway prices of around seven quid for yer cod’n’scraps, the pound of the fifties is now worth £105.
Multiply that by £2,000, what you say is today’s house price doesn’t actually look too daft.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
My first salary was £280pm, now I’m showing my age. My three mates and I would go and fill the car (which one had to beg to your bank manager for a loan) up with petrol, drive out into the country to a pub, have a couple pints of bitter, 20 Players #6, stop at the chippy before getting home and have change from a ten bob note. Happy days.
I agree with your points, I was talking about ‘the building’ bricks and mortar cost, not all the add on’s.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Probably a bit dangerous using the price of cod to compare house prices 😉
Adjusted for inflation the equivalent value of a pound now for specific years is :-
1950 = £31.69
1955 = £24.26
1960 = £21.30
The equivalent house prices are broadly c.£50 -60k.
Source thedesignlab[dot]co[dot]uk
Of course this source may be just as reliable as the average takeaway 🙂
Edit: it does appear to be W.I.P. for a 3rd party client of TDL.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
O17
Using anything as a comparison is dangerous.
Everything finds its own value, thanks to the basic ‘Law’ of supply and demand.
The thing with housing is that for many it is simply a thing of “need” – but for many more it is as much a “want”… and want it for a myriad of reasons.
And of course those that “want” generally dictate the price for those that “need”.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
“And of course those that “want” generally dictate the price for those that “need”.”
Houses have become “Giffen Goods” – contrary to the normal rules of supply & demand.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register