More than
half of housebuilders increased the rate at which they built new homes over the
last year and predict a further rise over the next 12 months, according to a
new survey.
Despite
this, less than half of housebuilders think the Government target of building
300,000 homes a year on average by the mid 2020s is achievable.
The survey of more than 400 housebuilding companies in England was
carried out for McBains, the leading construction consulting and design agency.
More than half of respondents overall (57%) reported they had
increased their rate of housebuilding over the last 12 months. Overall,
housebuilders said they had built, on average, 201 homes over the last
year. This was expected to rise to 297 over the next 12 months.
However, respondents to the survey cited worries over land
availability, slow planning permission and skills shortages as barriers to
preventing them building more homes.
Around half of respondents (48%) said these factors would also
make it difficult for the government to meet its target of building 300,000
homes a year on average by the mid-2020s.
The main findings of the survey are:
- More than half of respondents
overall (57%) reported they had increased their rate of housebuilding over
the last 12 months, rising to 66% in London. 11% decreased their
rate while for 32% the rate stayed the same.
- Of those that stated a
decrease, the most popular reasons were: not enough available or
appropriate land(34% – and 44% in London); planning permission
taking too long (34% – and 67% of respondents in London); and not enough
skilled labour (34%). One in five respondents in London cited
non-availability of finance.
- All respondents were asked
what the biggest issues affecting the amount of homes they can
build. The most cited issues were: land availability (55%); slow
planning permission (49%) and skills shortages (47%).
- Less than half of respondents
(48%) think the Government target of building 300,000 homes a year on
average by the mid 2020s is achievable. 42% think it can be achieved
with 11% undecided.
- Of those who don’t think the
target is achievable, the most popular reasons cited were: not enough
available or appropriate land (49% of respondents); not enough
skilled labour (40%); planning permission taking too long (39%); and
non-availability of finance (32% – and 47% in London).
- Of the homes to be built over
the next 12 months, housebuilders expected one in five (22%) of these new
homes to be classed as affordable homes for rent or sale.
- When asked what one single
thing housebuilders thought the Government should prioritise for the
industry to increase housebuilding, the most popular responses were:
incentivise large construction companies to develop more expeditiously to
dissuade them from holding onto land, such as introducing a land value tax
(24% of respondents); and provide loan finance to help support small and
medium sized developers build more homes(19%).
Clive Docwra, Managing Director of McBains, said the survey is
encouraging in that housebuilders are increasing the rate at which they are
building homes.
“However, issues such as a lack of appropriate land, slow planning
permission and skills shortages remain significant factors holding back
construction, which is why the majority of respondents are sceptical that the
government’s housing targets will be met," he added.
“In particular, the construction industry relies on thousands of
skilled EU workers because of skills shortages in the domestic workforce, and
with these workers potentially prevented from working in the UK after the
Brexit transition period ends in 2021, many housebuilders will be struggling to
find the workforce needed to build the new homes that are urgently needed.
“And for those people struggling to get a foot on the property
ladder, the finding that only around one in five of new homes to be built over
the next year will fall into the affordable category will be disappointing.”
