UK new homes lowest in five years

Published: 26th November 2021
Area: Residential Development

Share This

UK New Homes lowest in five years

The government’s own target of building 300,000 new homes per year is proving difficult to meet with the year to March 21 showing an 11% drop to just 216,490.  This is according to the government’s own Department for Levelling Up, Housing and Communities and is the lowest number of new homes being built since 2015-16. 

Many reasons have been sighted for this shortfall with the COVID pandemic playing a major part with sites closing down immediately in March 2020 – a restart did begin in May 2020 but three months had already been lost. 

Add to that the soaring cost of materials and overall availability and the fact that some developers are scaling back due to skyrocketing costs and reducing profits and the evidence is clear as to why this has happened. 

So how can house builders get back on track and ensure they are meeting the targets set by the government? 

Neil Gosling, head of residential development, comments, “There has been much talk and a promise of planning reform to bring additional sites forward for development in recent years.  This is crucial to the supply but we also need to see the time involved in securing planning and the commencement of actually breaking ground significantly reduced. 

Land values are significantly increasing due to developers having land shortages due to a lack of activity during lockdown.  This is causing developers to have to revaluate their profit margins, effectively reducing them, to secure sites for development. 

And while COVID impacted the development programme, a very real issue is likely to be a skills and materials shortage as developers catch up.” 

The need and desire for affordable new homes remains a top priority for the government.  The sector now has to catch up and deliver. 

Get In Contact

Neil builds long-standing working relationships with our clients by becoming an extension of their business. He is forward-thinking and progressive in his approach.

Related articles
Related services

Our focus is on residential development. From inception to completion, we can support you at all stages of your residential and mixed-use developments.

Our reputation as one of the leading national residential development teams is supported by our enviable client list which includes 7 of the top 10 UK housebuilders, so you can be confident that you are working with a team of true specialists who can provide a full range of legal services.

Our Thoughts

All the latest thoughts and insights from our team

Family Law Christmas Guide

1 Dec


Family Law Christmas Guide

Read article Right Arrow

India opens up to collaborations and campuses with international universities

30 Nov


India opens up to collaborations and campuses with international universities

The Indian higher education market has finally opened up to non-Indian universities. The snappily-titled, […]

Read article Right Arrow

SHMA® On Demand

All the latest on-demand content

Employment Breakfast: Disciplinary Processes – Getting them right

13 Dec

Nick Jones, Partner - Employment | Cecily Donoghue, Senior Associate - Employment

Employment Breakfast: Disciplinary Processes – Getting them right

Employment Law experts Nick Jones and Cecily Donoghue will guide attendees through an overview […]

Register Right Arrow

Biodiversity Net Gains – new mandatory requirements for developers

30 Nov

Anna Cartledge, Partner | Louise Ingram, Partner

Biodiversity Net Gains – new mandatory requirements for developers

New mandatory requirements (introduced by the Environment Act 2021) will drive the delivery and […]

Watch Right Arrow