Builders are
continuing to invest in land as they look to deliver further increases in
housing supply, HBF/Glenigan’s latest Housing Pipeline report released today demonstrates.
The report shows
that permissions for 361,971 new homes were granted in the year to October, underlining the industry’s intent to build
even more homes in the years ahead.
Official figures
released last month showed that net housing supply in England increased to
222,190 in the year to April, up an unprecedented 78% in the past five years.
The report highlights the commitment of the industry to go further and deliver
on the challenge laid down by Government to supply 300k homes a year.
The report also
shows that the number of sites the permissions are being granted on is
continuing to rise. The 361,971 permissions were on 21,848 different sites, the
highest ‘moving annual total’ since the series was started in 2006. This is
very welcome and suggests Local Authorities are spreading their housing need
across more sites instead of relying on fewer larger ones. This is something
HBF pushed hard to be enforced through the planning system as it enables more
SME builders to play their part in addressing our housing shortage.
The announcement of
an extension to Help to Buy in October’s Budget will provide further confidence
for the industry as it looks to push these permissions through the planning
system. Certainty of future demand is absolutely key for builders as they
look to invest in these permissions, and get them to the point to where they
are allowed to actually start building the homes.
Builders are also
continuing to invest heavily in the people, supply chain and new technologies
that will enable them to build out these permissions in the years ahead at a
rate that will help achieve Government targets.
Concern of course
remains as to the impact Brexit will have on the economy and the confidence of
new home buyers, and in particular on continued access to skilled foreign
workers and the industry continues to push Government for certainty.
Stewart Baseley,
executive chairman at HBF said: “Today’s figures clearly show the commitment of
the industry to delivering further increases in housing supply.
"The industry
has delivered unprecedented increases in housing supply over recent years and
is continuing to invest heavily in the land and people needed to go further.
The recent confirmation of an extension to the Help to Buy scheme provides
further certainty and confidence for builders in future demand. This is
enabling them to invest in more sites, their supply chains and recruit and
train more people, boosting local economies across the country.
“The industry
continues to push Government for confirmation that it will have ongoing access
to skilled labour from abroad post Brexit, which will be key to its ability to
build out these sites.”
