The Department of Communities and Local Government (DCLG) recently issued the Net Supply of Housing: 2014-2015, England report (12th November). Headline findings reveal:
- Annual housing supply in England amounted to 170,690 net additional dwellings in 2014-15, a 25% increase in net additional dwellings from 2013-14.
- The 170,690 net additions figure for 2014-15 comprised 155,080 new build homes, 4,950 additional homes resulting from conversions, 20,650 additional homes resulting from change of use, 630 other gains and a loss of 10,610 homes through demolitions.
Brian Murphy, Head of Lending at Mortgage Advice Bureau (MAB), commented: “(These) housing supply figures will invoke a collective sigh of relief in the housing market. Net supply of homes finally picked up in 2013-14 after five consecutive years of dwindling figures, yet 2014-15 has been an even stronger year, with the supply of homes up by a quarter annually. This has been primarily driven by over 155,000 new build housing completions: by far the highest figure seen in the past six years.
“With the worst of the recession behind us and the UK economy showing steady growth, the number of new build completions has increased by almost a third since the dangerous lows of 2010-11. Robust growth in housing supply is very welcome as consumer demand – buoyed by record low mortgage rates – shows no signs of abating,” Brian continued.
“However, the market is by no means out of the danger zone just yet. The number of housing completions is still far below the amount needed – net supply of dwellings remains 24% below the levels seen in 2007-8 – and we are seeing too many homebuyers chasing a single property. Across the UK there is an ever-growing gap between supply and demand, threatening to drive up house prices and derail affordability. The government must act on its promise to increase housing supply, not only through additional policies like the Starter Homes Scheme, but also by ensuring net supply of housing continues to grow at a strong rate.”