Housebuilders to deliver more homes over the next 12 months, but obstacles remain in place
Knight Frank’s Housebuilding Report estimates that net housing supply climbed to more than 200,000 in England in the year to April 2017. Furthermore, having surveyed some 70 housebuilders that collectively built more than 75% of all new housing in England in 2015/16, more than half of respondents expect their organisation to build more homes over the next 12 months.
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However, the longer term view is less upbeat. Two-thirds of respondents do not think that annual housing delivery can be sustained above 200,000 in the current policy environment. Labour costs and availability, as well as the planning system were cited as the main obstacles.
The report (link to report) also shows the availability of land remains a key challenge for housebuilders and developers. Almost half of respondents said they would increase their acquisition of land with planning consent over the next year, However, where site assembly is needed, the co-ordination of making the land ready for development, including guaranteeing infrastructure and utilities at the right time, can be a major hurdle, and ultimately a development risk for housebuilders.
In addition to housing and land supply, the Housebuilding Report looks at a number of issues and challenges facing the market. Respondents were asked for their views on the key proposals in the Housing White Paper, the possible impact of the Help to Buy Equity Loan scheme not being extended beyond 2021, Brexit and the planning system.
Knight Frank's Residential Development Team is on hand to provide further information on the report, along with assistance on every aspect of the residential development cycle - from facilitating the sale of land through to the sale of new homes.