Plans for housing after conference season

New homes – will the government finally reach its target in 2022?

House Sale

While the demand for properties continues to outstrip the supply available, building new homes across the UK has never been more important.

During the Autumn Budget, the chancellor, Rishi Sunak, announced that up to 180,000 new and affordable homes will be built annually. 

In addition to this, it was revealed £1.8 billion would be spent on developing 1,500 hectares of brownfield land to deliver one million new properties and an £11.5 billion investment through the Affordable Homes Programme is on the way.

Information surrounding the type of properties the government aims to build was not specified but, nonetheless, these new builds will likely be beneficial to many up-and-coming homeowners and home movers. 

If the targets that have been proposed are met, they will assist many Brits as they become homeowners or find a suitable retirement home.

Here at HBB Solutions, we analyse whether the government will reach its target during 2022.

Obstacles when building new homes

Housing targets have already proven difficult to meet according to the recent ‘Assessing how many permissions are needed for housebuilders’ study conducted by the Home Builders Federation and the Land Promoters and Developers Federation.

The study uncovered that more land needs to be allocated as currently there is not enough to go around.

To meet the target of 300,000 new homes each year, which has long been a government target, planning permission on roughly 474 to 1,385 medium to large sites across the UK needs to be attained.

Across the UK, there are a large number of derelict sites, proving the land is readily available. These findings indicate that the planning process needs a lot of improvement, as not granting enough permission across sites could halt houses from being built on time.   

In addition to this, recent statistics show that in 2020 Covid-19 caused the number of new homes registered to be built by UK housebuilders to drop by 23%.

Furthermore, developments have often been delayed because of insufficient staffing and resources. Shortages in materials including copper, cement, and steel have all played their part, while Brexit and Covid have both had an impact on labour and time on site. 

Current housebuilding targets

Schemes such as First Homes could help increase the number of new homes being built across the UK at a fast pace.

The First Homes scheme is only available on new builds, with anyone who qualifies able to purchase a home with a discount of up to 30%.

Recent figures show that roughly 1,500 of these homes are already available and they aim to deliver one million homes by 2024.

In total, there were 49,470 newly built homes and 46,010 homes were started during the first quarter of 2021. 

The figures also show in London there was a rise in the amount of housebuilding that was carried out this year. From January to March 2021, there were 14,530 new homes built, an increase of 18% compared to 2020.

But, overall, the government is struggling to keep pace with its targets. In 2020, a year badly affected by Covid, some 123,151 new homes were registered, compared with 160,319 in 2019, according to the National House Building Council a warranty and insurance provider. This was the lowest annual total since 104,922 new-builds were registered in 2012.

While Covid played a big part in this, the figures in 2019 – pre-Covid – were still well below the government’s eventual target.

Exact figures on housebuilding are hard to come by, as they vary a bit wherever you look and depending on where it’s measured by, but the target of 300,000 is definitely not being met yet and that is unlikely to change in 2022 as the country continues to recover from Covid, the Omicron variant increases the likelihood of new restrictions over the winter months, and labour and supply shortages continue to affect the construction sector.

However, there will still be a sizeable number of new homes built, with a variety of opportunities for agents, prospective buyers, and people retiring when it comes to making the most of what the new-build sector has to offer.

Here at HBB Solutions, we can help agents make the most of the new-build sector in a number of ways

To find out more about what we do and how we can help, please get in touch with us today. You can also check out our services here.

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