Rising development struggling to improve supply of new homes

 
Rising development struggling to improve supply of new homes

Despite the fact that there are more developments of new homes popping up across the UK, there are still shortages in the supply of new houses for sale, according to new reports. 

Supply and demand imbalance has been a problem in the UK for some time, with far more people looking to purchase properties than sell them. And even at a time when more residential development is taking place than at any time in the past few years, the UK is still failing to do enough to create the required number of new homes per year. 

Knight Frank's latest report shows that even though there are expectations that the house building industry can increase capacity this year - 60 per cent of respondents said they expect to see this happen - insiders do not believe the current market is conducive to meeting targets. 

Around two-thirds of those surveyed said that they believe the maximum number of affordable homes that can be afforded in any year at the moment is 180,000, falling short of the industry's target of bringing 200,000 homes per year to buyers. 

Grainne Gilmore, head of residential research at Knight Frank, said: "There is a recognition that the right type of homes must be built in areas where there is the most housing need, typically adjacent to existing urban areas. This has led to tensions about the greenbelt, with a lack of consensus on how to expand accommodation in some of the UK’s most thriving towns and cities."

As a result, there is a general consensus among builders that there needs to be more done by the new government to create policies that would see them able to build homes more freely. 

"Nearly one half of the respondents to the house builder survey said that rules around developing on greenbelt land should be loosened," Ms Gilmore added. With this in mind, it will be interesting to see where the new government chooses to go with regards to building new homes.