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Badly planned new-build locations hindering industry progress

As fears continue to mount over the government’s ability to provide the necessary housing for a growing population, a new study has provided some insight as to why this issue is failing to be tackled in a practical manner.

buying a homeFor many within the property industry, a key focus of 2016 has been the lack of new-build housing and its effects on those looking to buy a home, but who are unable to save up the necessary deposit. New details are emerging, however, that show the problem is very much an issue of location, rather than a comprehensive dilemma for the entire country.

According to a new study by Civitas, The Institute for the Study of Civil Society, the greatest motivator driving inequality across the UK is the lack of forethought applied when deciding where new housing should be concentrated.

With domestic and foreign investors, there are certain locations that are projected to grow in terms of population destiny exponentially over the next few years – yet property selling experts have found that these areas are experiencing some of the lowest construction rates versus other locales whose expected growth rates are lower, but still enjoy higher levels of construction investment.


“Nationally, the supply of new homes is currently running at about four-fifths of what it would need to be just to keep up with the needs of current rates of population growth,” said Daniel Bentley, editorial director at Civitas.

“This shortfall is not only pushing up prices but stymying the household growth we would otherwise expect to see – as more youngsters live with their parents or enter house-share arrangements – and creating homelessness.”

While areas of London such as the City of London, Kensington and Chelsea are experiencing rates of construction higher than their projected growth, the other 29 boroughs are woefully ill-prepared for the expected influx of workers.

With factors including greenbelt restrictions, inefficient investment models and high-value land preventing the building of new homes in London and the South East, prices have rocketed around the capital over the last five years making further construction even unlikely.

These high prices have thwarted the attempts by many vendors hoping for a fast sale, with many opting to use housing buying companies to ensure an efficient transaction thanks to their ability to buy any home for cash, and at very competitive prices compared to estate agents.

While the Department for Communities and Local Government is planning to review the future of new homes across the country in their White Paper publication due next month, for the moment at least, these issues will continue to have a negative impact on the industry as a whole.

Looking to sell fast and move on with your life? Why not ask National Homebuyers for advice, as we buy any house. Call 08000 443 911 or request a call back to find out how much you could get for your property.


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