Lowest number of new build developments coming to market since 2017
- New analysis from the UK’s largest property platform Rightmove reveals that the number of new build housing developments coming to market is at its lowest level since January 2017
- The figures are despite the government’s target to build 1.5 million homes over the course of this parliament
- Higher mortgage rates continue to set a challenging backdrop for both housing developers and estate agents. The average two-year fixed mortgage rate is now 4.92%, up from 3.53% four years ago
- The number of available homes for sale across new and existing homes is up by 85% compared to four years ago. However, there are still not enough affordable homes in the right places
- Rightmove is calling on the government to act now to support developers in the Autumn Budget and have a greater chance of realising its ambition to build more homes. Rightmove proposes the following:
- Removal of stamp duty for first-time buyers across both new build and resale properties, unlocking greater affordability for those at the start of the home-owning journey
- Govt. to go further with investment towards affordable housing provision, which would also address viability issues for housebuilders to some extent
- Carefully considered and targeted demand-side support measures for first-time buyers
New analysis from the UK’s largest property platform Rightmove reveals that the number of new build housing developments coming to market is at its lowest level since 2017.
The analysis tracks the number of housing developments being listed on Rightmove for sale for over ten years and excludes retirement developments.
Not since January 2017 have there been fewer new build developments coming to the market for sale.
These figures come despite the current government’s target to bring 1.5 million new homes to the market over the course of the current parliament.
There is a chronic shortage of having the right homes in the right places, at affordable price points, emphasising the need to build more.
What Rightmove wants to see
This latest data illustrates how the government is not on track to meet its own target of building 1.5 million homes over the course of this parliament. Rightmove would like to see the following measures considered in the upcoming Autumn Budget to have a greater chance of realising the ambition to build more homes.
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- Removal of stamp duty for first-time buyers across both new build and resale properties, unlocking greater affordability for those at the start of the home-owning journey across the whole property market
- Govt. to go further with investment towards affordable housing provision, giving developers more certainty in this area, as well as help to provide much needed affordable homes. Viability is a huge challenge for developers. Building costs, development obligations such as affordable housing and local infrastructure, higher interest rates and many more factors need to be accounted for which has become more challenging
- Careful consideration of targeted demand-side support measures for first-time buyers to make it easier for them to get on the ladder
Expert commentary
Steve Mariner, Group Sales & Marketing Director at Barratt Redrow, says: “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 says: “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.”
Colleen Babcock, Rightmove’s property expert says: “Despite the historically high number of available homes for sale, there is still a long-term shortage of affordable homes in the right place. We need more homes to support people at every stage of the moving journey, from first-time buyers to downsizers.”
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