Figures Show Construction New Homes Remains Well Below Whats Needed Solve Supply Shortfall

According to the most recent government housing construction figures, new supply remains far below what is required to meet the government’s ambitious goal of one million homes by 2020.

According to the latest quarterly ONS statistical release from the Department of Communities and Local Government, 139,030 new homes were built in England in the year to June 2016, a 6% increase over the previous year (DCLG).

In the year to June 2016, annual housing starts totaled 144,280, a 2% increase over the previous year.

According to the government, the figures show that progress is being made.

“We’ve got the country building again,” said Communities Secretary Sajid Javid, “with more new homes started and built than this time last year.” “This is significant progress, but there is still much more to be done.” That is why we are going above and beyond and increasing our investment in housing to ensure that many more people can benefit.”

The following headline figures are included in the statistical release:

  • On a quarterly basis, house building starts in England were estimated at 36,400 (seasonally adjusted) in the most recent quarter, a 2% increase over the previous three months and a 6% increase over the previous year.
  • Seasonally adjusted completions were estimated at 34,920, 7% higher than the previous quarter and 2% lower than a year ago.
    Private enterprise housing starts were 4% higher (seasonally adjusted) in the June quarter of 2016 than the previous quarter, while completions were 3% higher.
  • Housing association starts were 6% lower than the previous quarter, but completions were 29% higher.
  • Total starts are now 112 percent higher than the March quarter 2009 trough but 26 percent lower than the March quarter 2007 peak.
  • Total completions are 39% higher than the March quarter 2013 trough and 28% lower than the March quarter 2007 peak.

According to DCLG, the figures across the country showed “strong regional growth,” with high levels of completions demonstrated in London, Swindon, and Wakefield.

In London, completions increased by 24 percent in the year to June 2016 compared to the previous year, with local authorities in Greenwich and Waltham Forest seeing completions increase by 126 percent and 103 percent, respectively, over the same period.

Completions in Swindon and Wakefield increased by 104% and 41%, respectively.

“Both councils and the government share the same desire to build more homes.” “To solve our housing crisis, bold new action is required, and a renaissance in house building by councils must be at the heart of this,” said Councillor Martin Tett, housing spokesperson for the Local Government Association (LGA).

“To address our housing crisis, we need to build up to 250,000 homes per year.” The private sector clearly has an important role to play, but these figures only serve to confirm that they cannot build the homes we require on their own and will likely be further limited by uncertainties in the months and years ahead.

“Councils want to get to work on building the new homes that people in their communities desperately need.”

“If we are to have any hope of resolving our housing crisis, councils must be able to replace sold homes and reinvest in the construction of more genuine affordable homes, which our communities desperately need now more than ever.”

“The government’s latest house-building figures confirm there is still a lot to do to meet the level of supply we need,” said Gavin Smart, deputy chief executive of the Chartered Institute of Housing. It’s an encouraging sign that the number of new starts is increasing, but we’re still not building nearly enough homes, and the target of a million new homes in the lifetime of this Parliament becomes more difficult to achieve with each passing quarter.

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“Recent research has revealed that homeownership is at a 30-year low, private renting is at a 40-year high, and homelessness is on the rise.”

“The most recent house building figures, combined with research demonstrating the challenges our housing market now faces, are the clearest indication that the government must act in the Autumn Statement to ensure that more homes are built and that the organisations ready to build them are supported.”

“The modest pace of improvement is a concern,” said Rod Lockhart, managing director of online mortgage lender LendInvest. At the current rate, we will fall far short of the Government’s target of one million new homes by 2020, failing to address the UK’s severe housing shortage.

“The government bears the primary responsibility for reviving the housing industry.” Because the large housebuilders are unwilling to do more, efforts must be directed toward small and medium-sized builders. The rumoured £5 billion Home Building Fund is a good start, but money isn’t the only issue holding back these builders. More needs to be done to simplify the planning system and increase access to building land.”

Last Updated on December 30, 2021

Indra-Gupta

Author: Indra Gupta

Indra is an in-house writer with a love of Newcastle United and all things sustainable.

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