4 Takeaways From The Housing Statistical Release
The government recently published the housing supply net additional dwellings figures for 2017/2018, of which overall new-build and housing growth was up 2% on 2016/2017. This level is 1% below the 2007/2008 peak and 78% above the trough in 2012/2013.
This breaks down into 195,290 new-build homes; 29,720 builds from the change of use between non-domestic and residential; 4,550 from conversions between houses and flats; and 680 other builds. This is offset by 8,050 demolitions.
Here’s 4 key points and questions we’ve taken away from the report:
Affordability is still an issue
Despite the increase, only 18% of new builds were considered affordable, considerably lower than previous years, except the last. Of this, only 2% were for social rent. So the question is, are these figures moving toward solving the housing crisis?
An increase in regional growth
Cornwall saw 3,427 new-builds, putting it on top of the leaderboard, followed by Birmingham, Manchester, Liverpool, Cheshire West and Chester, and Newcastle upon Tyne. The UK’s economy has been in desperate need of regional growth in areas more affordable than London.
Office to residential conversions may be over
In the 2016/2017 release, 17,751 homes created were offices converted into flats. This year, that figure dropped to 11,555. These figures may be a sign that the office-to-resi boom is over, and that all the vacant or abandoned offices in a good location for housing have been used up. Which could then leave to a greater strain on new-builds over conversions.
Other conversions saw 743 agricultural properties to residential, 218 storage to residential, 110 light industrial use to residential, 861 any other to residential and 39 unspecified to residential.
What’s driving growth?
New builds (not conversions) hit 195,290 this year, a 6.3% rise on previous years. Contractors have thanked the Help to Buy scheme for this.
However, the Help to Buy scheme ends in 2022, so what will replace this? Understanding what is aiding growth is crucial in ensuring the housing increase hasn’t reached its peak.
Despite the growth, government figures show that there are now 227,000 long-term empty homes in the UK, and work will need to be done for these to be filled.
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