The number of new homes being registered to be built has dropped by a substantial 42 per cent in the past year.
The latest new home registrations from the National House Building Council, (NHBC), revealed that there were 38,044 new plots and planned homes registered by builders in the three months to the end of June this year.
It is down from 65,645 during the same quarter a year earlier in 2022.
It comes amid a chorus of calls for more housing to be built to help solve the current housing crisis – something that the Government responded to this week by announcing plans to build a new urban quarter in Cambridge.
Fall: There were 38,044 new plots registered by builders in the second quarter of 2023, according to the NHBC
The number of new homes completed in the three months to the end of June this year was also down.
Numbers dropped 11 per cent to 35,936 compared to the same period a year earlier, NHBC said.
It is a similar story around most of the country, with most regions showing a drop in registrations.
London, however, bucked the trend with 4,405 new homes registered in the second quarter of this year.
It is an increase of 9 per cent in the capital compared to the same period a year earlier.
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The figures have been released following the Government’s latest housing announcement.
Housing secretary Michael Gove and Prime Minister Rishi Sunak this week unveiled plans to build up to 250,000 homes in Cambridge and the surrounding area.
A new urban quarter in Cambridge will be Mr Gove’s top priority on a list of 20 centres earmarked as part of an ‘inner-city renaissance’.
Housing experts welcomed the Government’s focus on tackling the issues in housing but said more needed to be done, particularly to help reduce mortgage rates.
Average two-year fixed rates reached 6.66 per cent this month, according to Moneyfacts.
A north London estate agent explains that not enough housing is being built that is affordable to local people
Steve Wood, of NHBC, said: ‘With mortgage rates at a 15-year high, volumes of homes built for private sales have weakened, although this is partly offset by bulk sales into affordable housing markets.
‘The Government’s renewed focus on housing policy is welcomed, however a more favourable environment will be reliant on a fall in inflation, easing of mortgage rates and action to address the key supply side constraints of planning and nutrient neutrality.’
North London estate agent Jeremy Leaf, said: ‘These NHBC numbers are disappointing but not altogether surprising bearing in mind they reflect activity in the period after the Liz Truss Budget and the turmoil that created.
‘The fact remains that we are not building enough housing which is affordable to local people. Social housing, which has been sold off, has not been replaced quickly enough, creating a shortfall. But why bother to build the housing we need when the market for existing homes is so quiet?
‘Decisions are being taken now to deliver houses and flats which will be ready for occupation in the next two to three years at least. Building needs more than just encouragement and Government pronouncements.’
The number of new homes completed in the three months to the end of June this year was also down
The Government’s plans – which also involved relaxing planning rules to make it easier to turn shops and takeaways into homes – focused on avoiding developing on the green belt.
Making the announcement earlier this week, Mr Gove said the Government will be ‘using all of the levers that we have to promote urban regeneration rather than swallowing up virgin land’.
The move comes after revelations that the majority of local authorities have failed to build a single council home in the past five years.
The Government is also to fast track major infrastructure projects – such as off-shore wind farms, transport links and nuclear power stations – under other new plans.
Reforms to streamline the process for any developments that provide community and environmental benefits will seek to slash ‘needless bureaucracy’.
A special fast-track route will be established so planning approval can be obtained more efficiently for these projects.
This post first appeared on Dailymail.co.uk
