New housing delivery rises in England

It is a truth universally acknowledged that the best data on new housing delivery across the UK is published very very late. Even so, all of those interested in the housing market will have been waiting for today’s update on net additions of housing in the year 2017/18 with some anticipation. 

The forward-looking indicators that we monitor in the market hinted at the results, but confirmation around the delivery of new homes, encompassing new-build development, conversions of one residential property into several units and change of use – where property used for another purpose such as an office is converted into a residential property, is welcome for everyone assessing activity in the market. 

Total net additions rose by 2% in England, with a 6% rise in new housebuilding (which makes up 88% of the total net delivery of new homes). This is good news, but there is still a long way to go before net additions reach the 300,000 mark which the Government has set as a target for 2022. 

Grainne Gilmore, Head of UK Residential Research at Knight Frank, said: “Some mixed housing news today for the Government which is being buffeted by Brexit negotiations. The delivery of new homes, including new-build housing, conversions and change of use, across England has edged up by 2%, reaching 222,190 in the year to March. The number of total net additions has climbed every year since 2012, with new housebuilding alone up 65% over the same period. The number of new homes built in 2017/18 was 6% higher than the previous year. 

"However, net additions are still around 26% lower than the Government’s annual target of 300,000 new homes. While more timely data capturing energy performance certificates (EPCs) granted to new homes suggest a continued pick-up in activity this year, separate housing starts data, which captures information on new homes being started on site, shows a moderation in activity, which could weigh on housing completions in the coming years. 

"There is also a headache for policymakers in London, with net additions in the capital falling by 20% year.-on-year. Only 12 of the 33 boroughs in the capital reported a rise in the number of new homes provided in the year the March. The EPC figures suggest there has been a pick-up in activity since March, but the overall data shows that current planning policies have put a dampener on development, at a time when the housing need in London is growing.”